The Weekly Volume Report: Low Volume Rally in USD/JPY

07/20/2015 9:00 am EST

Focus: FOREX

Kristian Kerr

Chief Technical Strategist, Forex Capital Markets LLC


Kristian Kerr, of DailyFX.com, takes a technical look at the daily volume charts of three currency pairs and shares the levels each pair hit last week and what these levels indicate, as well as what level is still a cause for concern and which is needed to turn the outlook positive again on the euro. 


Talking Points

  • USD/CAD rallies to 6-year highs
  • USD/JPY advance sharply but on low turnover

Daily Volume Chart: EUR/USD

chart
Charts Created using Marketscope—Chart Prepared by Kristian Kerr
Click to Enlarge

  • EUR/USD fell to its lowest level since late May this past week
  • However, below average volume on the decline is concern and unsupportive of a broader decline
  • The contraction in daily OBV suggests a volume spike is looming
  • A close back over 1.1215 on above average volume is needed to turn the outlook positive again on the euro

Daily Volume Chart: USD/JPY

chart
Charts Created using Marketscope—Chart Prepared by Kristian Kerr
Click to Enlarge

  • USD/JPY moved steadily higher this past week to trade at its highest level in three weeks
  • However, low volume on the move higher is unsupportive of a broader advance
  • The modest move higher in daily OBV is also a concern
  • A close under 122.00 on above average volume would turn us negative on the pair

Daily Volume Chart: USD/CAD

chart
Charts Created using Marketscope—Chart Prepared by Kristian Kerr
Click to Enlarge

  • USD/CAD broke above the March high to trade at its highest level in more than six years
  • Well above average on the break to new highs is supportive of the advance
  • New highs in daily OBV is also supportive of the broader uptrend
  • A daily close back under 1.2725 on above average volume is needed to turn the outlook negative on USD/CAD

By Kristian Kerr, Senior Currency Strategist, DailyFX.com

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