Market Analysis Monday 20th of May

ANALYSIS 20-05-2013

The Nikkei soars again a result of Government policy

Japanese shares listed for trading last Friday after a rise in the previous two days has decreased.

Japanese stocks rose as a result of the statement of the Prime Minister of Japan, Shinzo Abe, who said it would support a strategy to boost Japan’s economic growth in the short term. At the same time, the exchange rate of the yen against the dollar last Friday fell back so as to give impetus to the strengthening of shares based exporters.

Technically, the index in the trading session today, Monday (20/05) is likely to strengthen, test positive trend. On the M15 chart bullish hammer berformasi provide opportunities for the index to move upside. However, the volume is likely to increase, as well as 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 resistance level of 15440 and 15517. If it fails at 15 315, then the next index is expected to tend to retest the support level 15210 and continued to be in the area of ​​15122 possibilities.

Japanese Yen Strengthens After AIG Moves Up to 4.5 Year Low Last Week

In today’s trading the Japanese yen trying to strengthen against the U.S. dollar (20/05). The yen strengthened against all 16 major counterparts after Japan’s Economics Minister Akira Amari said that a weaker yen will further threaten the people who had received negative impact of the yen tumbled and the government is expected to be difficult to minimize these impacts.

Technically, today’s trading session on Monday (20/05), the dollar yen pair has a chance to move in a positive trend.

A stronger yen primarily expected soon reexamine the minimal resistance at 104.33 and 105.45 maximum. Meanwhile, if the Yen was able to break and stays below 102.87 then another alternative scenario that is likely to test support Yen’s in the area of ​​101.86 and 109.98.

Strong dollar, Golden Touch 1 Month Low

Gold fell the seventh straight session on Friday, the longest series of losses in four years, as the dollar rose to its highest level since 2008 after Federal Reserve officials said the U.S. central bank should end stimulus for the U.S. economy.

Technically, gold at today’s trading session on Monday (20/05) 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 ​​1310.32 and re-test the maximum level of 1285.89. However, if the price of gold is able to break and hold above 1348.35 then estimated the price of gold could potentially test the Resistance 1379.10 and 1409.76.