Market Analysis Wednesday 12th of June

Nikkei Concerned About Strengthening Yen

Nikkei fell as investors worried about the impact of the strengthening of the Japanese yen against the performance of exporters in the international market. USD / JPY rose 3% last night and had touched 95.58 near its strongest level in two months.

Technically, the index in the trading session today, Wednesday (12/06) likely to weaken, test negative trends, the impact of Wall Street. On the bearish engulfing formation M15 chart gives an opportunity for the index to move downside. However, the volume is likely to increase, an early indication of a bullish index. In addition, RSI, on the M15 chart, is in the oversold area, cue upside.

Expected, the index tested the first support level ie 12164 and 11634. If it fails in 13060, we then estimated the index tends to retest the resistance level of 13658 and continued up to the possibility of being in the 14264 area.

ECB’s Asmussen statement Rescuing Euro

The euro managed to continue its rally against the U.S. dollar after comments one member of the board of the European Central Bank, Joerg Asmussen.

Technically, today’s trading session on Wednesday (12/06), the pair euro dollar likely to move in a positive trend.

A stronger Euro is mainly expected to soon re-test the resistance at 1.3449 minimum and maximum 1.3545. Meanwhile, if the Euro was unable to break and stays below 1.3309 then another alternative scenario the Euro likely to test support at the 1.3196 area and 1.3091.

Bury the BoJ Stimulus anxiety Gold

Gold closed down less than 1% on Tuesday, after touching a low level in nearly six weeks, as the lack of a new economic stimulus from the Bank of Japan sparked fears that other central banks may also withdraw its support, eroding the appeal of gold as a means of inflation hedge. Gold fell as much as 1.4% after the Bank of Japan refrained the new policy, arguing that the bond market has stabilized.

Technically, gold at today’s trading session on Wednesday (12/06) potentially bearish, test returned negative trend, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Band which began to widen, thus giving impetus to gold to the upside.

Estimated gold price immediately prior to test support at least in the area of ​​1347.45 and re-test the maximum level of 1329.15. However, if the price of gold is able to break and hold above 1376.10 then estimated the price of gold could potentially test the Resistance 1398.78 and 1417.08.