Forex Sentiment & Volume Analysis – USDJPY
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 Plus’ Speculative Sentiment Index. It is free for real FXCM account holders, but is also free for anyone using a two week trial:
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
(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
(Screen capture from
Plus.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
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