TOKYO, Aug 27 (Reuters) – Tokyo rubber futures erased earlier losses to inch up on Thursday, as improved technical charts prompted funds to enter the market, offsetting the negative impact from the yen’s strength.
* The benchmark Tokyo Commodity Exchange rubber contract for February delivery <0#JRU:>, which debuted on Wednesday, was at 206.9 yen per kg late on Thursday, up 0.1 yen from the previous close. The benchmark fell as much as 1.5 percent to 203.8 yen.
* Rubber futures have recovered from a low near 191 yen hit after touching a 10-month high of 214.0 yen on Aug. 14, suggesting the market was due for an uptrend, said Masato Miyanaga, senior adviser at H.S. Futures in Tokyo.
* “The Relative Strength Index is also turning upward while levels where stop-loss orders are placed are inching up,” he said. The Relative Strength Index shows the strength of a price by comparing upward and downwward close-to-close movements.
* Miyanaga said chart-based funds appear to be putting money in the market, given improved technicals. If the market closes above 209 yen — the settlement price of the day before prices hit the 10-month high — it would signal the market has entered an upper range, he said.
* Rubber prices were lower earlier on Thursday as NYMEX crude oil futures for October delivery briefly dipped below $71 a barrel, after settling down 62 cents at $71.43 on Wednesday. Wednesday’s loss came on top of Tuesday’s $2.32 decline. [O/R]
* The yen and dollar held onto broad gains on Thursday as investor fatigue in riskier assets like stocks and higher-yielding currencies set in, despite robust economic data from the United States and Europe. [USD/]

Source: Reuters

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