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Forex Sentiment & Volume Analysis - USDJPY

Forex Sentiment & Volume Analysis - USDJPY

Rob Pasche, Forex Trading Instructor

Talking Points:

  • USDJPY has been in a range after an extended uptrend
  • Volume is increasing during down-moves
  • USDJPY SSI is at +2.5, a bearish signal

Retail Sentiment is acquired using DailyFX Plus’ Speculative Sentiment Index. It is free for real FXCM account holders, but is also free for anyone using a two week trial: DailyFX Plus Trial

Retail Volume is available on FXCM’s Trading Station Desktop platform. This free software can be downloaded here and a free demo login can be acquired here. Real Volume is a default indicator that can be added to your charts.

Learn Forex: USDJPY Falling Prices Confirmed by Above Average Volume

Forex Sentiment & Volume Analysis - USDJPY

(Created using Marketscope 2.0 charts)

We saw two major drops in the USDJPY in the past few months, the first in December and the second in January. Real volume traded during these two drops was significantly larger than average. Especially when compared to volume traded when price was climbing higher.

Learn Forex: USDJPY SSI at its Highest Level in Months

Forex Sentiment & Volume Analysis - USDJPY

(Screen capture from DailyFXPlus.com)

If we look at the most recent SSI readings for USDJPY, we can see that this is the highest SSI reading we have seen in months. This doesn't guarantee that price will move lower, however.We can see examples of the last two years when extremely positive SSI had little effect on price. But if the USDJPY was going to begin to move lower, I believe the SSI would reach a very high positive figure.

In Conclusion

Remember, there are no guarantees in trading. Perform your own due diligence and trade using sound money management. Also, feel free to utilize a demo account to practice trading risk-free before trading with real money if you are just starting out.

Good trading!

---Written by Rob Pasche

Video Lessons || Free Forex Training

Trading Using Fibonacci (13:08)

Reading the RSI, Relative Strength Index (13:57)

Money Management Principles (31:44)

Trade Like a Professional Workshop (1:44:14)

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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