Sentiment analysis can give traders a unique edge by understanding how market participants feel about a currency. Tools like the Commitment of Traders (COT) report reveal institutional positions, while Forex forums and social media platforms provide retail sentiment insights. If the majority are bullish on USD/JPY, consider contrarian strategies, as extreme sentiment often precedes reversals. Pair sentiment data with technical analysis to confirm entries and exits. Understanding market psychology can help you anticipate moves that others miss.