The Weekly Volume Report: Near-Term Volume Profile Supportive of USD/JPY

By DailyFx | Updated August 29, 2014 AAA

DailyFX.com -

Talking Points

  • Volume trends weigh on EUR/USD
  • USD/JPY consolidates on below average volume
  • USD/CHF sees new highs for the year with rising OBV

Get real time volume on your charts for free. Click HERE

Daily Volume Chart: EUR/USD

The Weekly Volume Report: Near-Term Volume Profile Supportive of USD/JPY

Charts Created using Marketscope – Prepared by Kristian Kerr

  • EUR/USD touched its lowest levels in almost a year this week
  • Daily volume has been steadily rising since early July which suggests the medium-term downtrend is legitimate and maturing
  • OBV also supportive of the positive trend with no clear divergence
  • Highest daily volume in over two months this past Wednesday is a potentially positive initial reversal signal
  • However, dramatic increase in volume on a move through 1.3300 is needed to confirm that a more serious counter-trend move is unfolding

Daily Volume Chart: USD/JPY

The Weekly Volume Report: Near-Term Volume Profile Supportive of USD/JPY

Charts Created using Marketscope – Prepared by Kristian Kerr

  • USD/JPY touched its highest level since late January on Monday before pulling back over the past few days
  • Generally increasing volume since late July is suggestive of a budding uptrend
  • Increase in On-Balance-Volume during the same period further supports the burgeoning trend move higher
  • Price decline over past few days on lower than average volume favors an eventual resumption higher
  • Price move under 102.75 on above average volume, however, would force a re-think of the broader positve bias

Daily Volume Chart: USD/CHF

The Weekly Volume Report: Near-Term Volume Profile Supportive of USD/JPY

Charts Created using Marketscope – Prepared by Kristian Kerr

  • USD/CHF traded at a new high for the year this week
  • A steady rise in daily volume since early May suggests the uptrend is quite healthy
  • New yearly highs in OBV this week is also seen as very supportive of the trend
  • A volume/price divergence this week on the push to new highs is a potential negative
  • However, only aggressive weakness below .9100 on above average volume would signal that a more serious correction is underway

To receive Kristian’s analysis directly via email, please SIGN UP HERE.

Related Forex Analysis
  1. Japanese 10-year bond yield falls to lowest level since April 2013
    Forex News

    Japanese 10-year bond yield falls to lowest level since April 2013

  2. USD/JPY Soars Past 111 As Void Of Bearish Signals Opens Further Gains
    Forex News

    USD/JPY Soars Past 111 As Void Of Bearish Signals Opens Further Gains

  3. GBP/USD failed to break below 1.5970 support, and rebounded
    Forex News

    GBP/USD failed to break below 1.5970 support, and rebounded

  4. Nikkei rises to highest level since 2007
    Forex News

    Nikkei rises to highest level since 2007

  5. USD/CAD Retests Critical Barrier After Bearish Pattern Falls Flat
    Forex News

    USD/CAD Retests Critical Barrier After Bearish Pattern Falls Flat

Trading Center