Market Analysis Friday 31th of May

ANALYSIS 31-05-2013

The Nikkei index weakened due to strengthening Yen against Dollar

Japanese stock exchange to trade Thursdays yesterday recorded a significant decline. Weakening exchange movement was caused by a decline in the shares of exporters that are not caused by the strengthening of the yen against the U.S. dollar, but also due to the decline in sales turnover reports Honda Motor fell 3.4% in the first quarter ago.

Technically, the index on the trading session today, Friday (31/05) chance to weaken, test negative trends, browse Wall Street. On the bearish engulfing formation M15 chart provides an opportunity for the index to move downside. However, the volume tends to rise, early indications bullish index. In addition, RSI, on the M15 chart, selling in saturated areas, signal upside.

Partly, the index test in advance Support level ie 12910 and 12326. If failed in the 13835, the estimated index tend to test further back resistance level that is 14 465 and the possibility of being extended to 14 990 in the area.

Industry performance Chance Rise, Yen strengthened

Movement of Japanese yen in forex trading this morning (05/31) observed indicate movement strengthened against the U.S. Dollar. USDJPY currency pair opened at 100.91 in early trading range (00.00 GMT) and then down around -14 pips or about -0.13% and the rolling observed in the 100.77 range. This indicates strengthening of the U.S. Dollar versus the Yen.

Technically, today’s trading session on Friday (31/05), the dollar yen pair had the opportunity to move in a positive trend.

Strengthening of yen mainly predicted back soon test resistance at 102.67 ie the minimum and maximum of 103.80. And as, if not able to break yen and 100.93 survive under the alternative scenario that is another chance to test Support yen at 99.67 and 98.63 area.

Gold price pierces $ 1.400 per ounce by the weakening U.S. dollar

The U.S. dollar weakened in trading Thursday (30/05) depressed U.S. economic data indicate growth in the first quarter is not as good as previously reported, except that there is an increase of unemployment claims. This is the key driver of gold prices this time to penetrate the highest price in two weeks.

Technically, gold trading session today, Friday (31/05) reversal potential, tested positive trend, but prone to profit taking. RSI indicators tend to re-test resistance bullish channel and head area, but Bollinger band began to shrink, giving impetus to gold to the downside.

Chance of gold price immediately prior to test resistance at least in the area and re-test 1443.33 maximum level of 1465.18. But if the price of gold can not afford to break and survive under 1415.25 then predicted the gold price potentially testing Support ie 1391.88 and 1370.74.