Nikkei 225 stabilises while EUR/GBP, copper prices continue to sideways trade
Nikkei 225 stabilises as US yields come off this week’s peaks while EUR/GBP, copper prices continue to sideways trade.
Nikkei 225 recovers ahead of weekend
The Nikkei 225 closed its 8-to-9 May price gap by falling to 36,856 on Thursday before bouncing back on Friday as Japan's inflation rate held steady at 3.6%.
Whilst recovering the index closed its Wednesday-to-Thursday gap with Wednesday's 37,299 low which now acts as resistance.
While not overcome, Thursday's low at 36,856 might be taken out in the coming days with the 8 May low at 36,607 acting as potential minor support ahead of the 55-day simple moving average (SMA) at 36,183.
Above Friday's 37,373 meanders the 200-day SMA at 37,807 which may act as resistance with the 20 May peak at 37,921. If bettered, the May peak at 38,494 would most likely be back in sight.
EUR/GBP holds at support zone
EUR/GBP has been hovering above its £0.8394 current May low since last week and in doing so remains above the 200-day SMA at £0.8380.
A fall through the moving average would likely engage the late March and early April lows at £0.8324-to-£0.8316.
Immediate resistance can be found along the tentative April-to-May downtrend line at £0.8438 ahead Wednesday's £0.8459 high and the 55-day SMA at £0.8462.
Copper still range trades
Copper prices have been stable over the past month, hovering above their late April-to-May lows at 4.5248-to-4.4778 and the 200-day SMA at 4.4737 but remaining below the 55-day SMA and 6 May high at 4.7486-to-4.8073.
Further sideways trading in an even tighter sideways trading range has been witnessed over the past couple of weeks between Thursday's 4.7433 high and Monday's 4.5625 low.
A fall through this low would likely lead to the 4.5248-to-4.4718 zone being revisited whereas a rise above 4.7433 would probably target the 4.7830-to-4.8073 region.
It is likely that, for today at least, the copper price will remain within the recent trading range boundaries in further low volatile sideways trading.
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