Coloured Negative sentiment, the Nikkei Decline in Early Week
Various negative sentiment overshadowing the Japanese stock market movements earlier this week, the main index Nikkei fell 1.5% immediately opened. The strengthening of the yen and Japanese economic data were lower than expected, coupled with the negative sentiment from Wall Street lower on Friday dragged market movements.
The yen traded higher against the dollar in today’s trading, investors took profit after the victory of parties supporting Prime Minister, Shinzo Abe, at the general election between the lower chamber of parliament on Sunday. Abe’s coalition parties won 325 of 475 seats, which have been widely predicted victory makes previous yen fell to its lowest level in seven years, and trigger profit-taking after the victory is realized.
Meanwhile, the Tankan manufacturing index data in the third quarter and then released at 12, lower than the previous quarter and the estimated 13 economists estimate unchanged at 13. While the Tankan non-manufacturing index showed an increase to 16 the previous Dair 13, and higher than economists forecast at 14.
The headline Nikkei index is now down 1.1% to 17175.34. While the Nikkei futures traded in the range of 07 339 to 17 165 at daily lows and highs 16 975 17195.
Technically, the index on the trading session today, Monday (15/12) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume tends to rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 17100 and 17050. If it fails in 17135, we then estimated the index tends to retest the resistance level that is 17 150 and continued until the possibility of being in the 17200 area.
Rebound, Pound Rally Aims Movement
Sterling on last week’s trading in general observed trend strengthened against the US dollar. Trading currency pair GBP / USD is once opened in the range of 1.5564 in early trading week has risen about 153 pips or about 0.98% and closed at the range of 1.57183.
Analysts suggested that the stronger currency on last week Sterling associated with reports of economic research institutes and business Markit which convey to the public that the service sector in the UK has increased performance.
The development is indicated by the increase in indicators of economic fundamentals Services PMI rose to 58.6 figures of previous period is 56.2. The positive announcement shows better performance than the expectations of economists, who expect to decrease down to 56.6.
on trade in this week (December 15 to 20), the normal range of GBP / USD weekly forecast to have the support level at 1.55869 and then at 1.54555. While the resistance level at 1.58865 1.58024 later on.
The movement of the currency pair is expected to be affected by a number of economic data releases that include: Retail Sales m / m and the Average Earnings Index 3m / y.
Technically, the trading session today, Monday (15/12), pound sterling-dollar pair a chance to move in the negative trend.
The weakening of the pound sterling primarily expected soon reexamine the minimum support at 1.5650 and 1.5600 maximum. Meanwhile, if the pound sterling was able to break and hold above 1.5708, then the other alternative scenario that Pound chance to test resistance in 1.5730 and 1.5780 area.
US Economic Optimism Reduce Demand Gold
Gold prices slipped back on Friday as optimism about the US economy dampen demand for gold as a safe haven. The Thomson Reuters / University of Michigan index of consumer sentiment report in December rose to 93.8 from 88.8 the previous month.
Bullion was also pressured by a further decline in oil prices, which eroded the appeal of the precious metal as a hedge. Gold is likely to continue to be under pressure ahead of the US central bank meeting next December 16 to 17, where policy makers are expected to argue about the timing of the first rate hike in 8 years.
Technically, gold in today’s trading session on Monday (15/12) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1210.33 and re-test the maximum level of 1205.73. However, if the price of gold is able to break and hold above 1216.40, the estimated price of gold could potentially test the 1213.40 and 1218.72 resistance.
