Classic VPA on GBP/JPY
GBP/JPY often delivers classic volume price analysis (VPA) signals. This yen cross is volatile. It reacts strongly to risk sentiment. High volume on moves shows conviction. Low volume warns of traps.
A classic VPA on 5 min chart of GBP/JPY on the release of NFP today. Huge down candle on light volume, before we saw a switch back higher as market absorbed poor numbers, and likelihood of a September FED hike in interest rates disappear faster than snow in July.
The trigger of the volatility indicator (purple arrows) also signaled high probability of a re-trace to within spread of the down candle. Volume simply validated this point.
Indeed, FED Funds Rate now pricing in a 44% probability of a rise in rates in December, which is a re-run of last year’s interest rate saga. As of yesterday FED funds showing a 30% probability of a rise in September
Spotting Accumulation and Distribution
Look for accumulation on down candles with rising volume. This signals smart money buying. Distribution appears at highs with high volume but failing price. Quantum indicators highlight these phases clearly on NinjaTrader or MT5.
Practical Example in Action
A recent GBP/JPY setup showed stopping volume at lows. Price reversed higher on strong volume. Anna Coulling’s VPA methodology confirms these textbook patterns. Quantum Trend Monitor keeps you in the move longer.
Classic VPA on GBP/JPY rewards patient traders. Combine with Quantum tools for reliable signals in yen crosses.