The barometer of risk-on and off has usually been the Japanese yen (JPY) but today, the break of 1.1...
The Weekly Volume Report: Low Volume Rally in USD/JPY
07/20/2015 9:00 am EST
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.
Daily Volume Chart: EUR/USD
- 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
- 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
- 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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