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

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
  

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Daily Volume Chart: EUR/USD

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

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

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
  

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— Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com

To contact Kristian, e-mail kkerr@fxcm.com. Follow me on Twitter @KKerrFX

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