This is one of my favourite charts and it would be hard to find a better advert for volume price analysis. The GBP/JPY is the most volatile of all pairs and so is avoided by many traders. But just like breakout trading where volume comes to our assistance, so it does here and really helps to build confidence in trading the ‘dragon’ which is a name that is well deserved. This is not a recommendation to trade this pair, but this example simply reinforces the power of volume price analysis. In this case we have a ‘stepped’ bullish trend which took the pair 1000 pips higher over a matter of a few days, with congestion phases developing, and then breakouts taking the pair higher and suppported with excellent volume before finally arriving at an extended congestion phase which was in fact the precursor to a reversal to a bearish trend of some magnitude thereafter. But again, the descent would have been confirmed with volume once more!