Yes, it's velocity sensitive. The keys are quite sensitive, more like a keyboard than an electric piano (coming from an electric piano as I am, it's easy to play a note unexpectedly loud, but I think that's not hard to get used to). The different keycaps for each note feel a bit different from each other as the leverage angle is slightly different.

I should note that I have yet to try the MIDI capabilities. I didn't have a MIDI-capable computer in my lounge until I recently acquired a USB adaptor, and I haven't dug out my MIDI cables yet.