Nikkei ends lower on a strong Yen

FXStreet (Mumbai) - The Japanese equity markets snapped seven day winning streak tracking overnight weakness in the US equities and a sharp rebound in the Yen.

The Nikkei index ended 0.68% lower at 17,813.38 levels, compared to the previous session’s close of 17,935.64 levels. The Yen rose to 120.90 levels to the dollar prompting about of profit taking in the stock markets.

Among the stocks, Alps Electric Co., and Yasakawa Electric Co., fell 4.74% and 4.69% respectively. Sony Corp. fell 4.02%, while Nippon Paper Industries declined 3.57%. Meanwhile, gainers included Ube Industries, which gained 5.41%, Advantest Corp, up 3.2%.

Overall the stock prices are likely to remain well supported ahead of Sunday’s elections. Expectations that Japanese voters will give the thumbs up to Abe’s radical reflationary policies are likely to support stock prices.

Nikkei Technical Levels

The index has a major support located at 17,500 levels, under which losses could be extended to 17,127 levels. Meanwhile, resistance is seen at 17,920 and 18,030 levels.

EUR/USD correction can extend up to 1.2400 – FXStreet

Valeria Bednarik, Chief Analyst at FXStreet, notes that further fall in stocks may cause the EUR/USD pair to rally towards 1.2400 price zone.
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