23.04.202613:32 Forex Analysis & Reviews: USD/JPY: Tips for Beginner Traders on April 23rd (U.S. Session)

Trade Review and Tips for Trading the Japanese Yen

The test of the 159.63 price level occurred when the MACD indicator had just begun moving upward from the zero line, confirming a valid entry point for buying the dollar. As a result, the pair rose by 14 points.

In the second half of the day, economic data from the United States is expected to be released, presenting a similar picture of the economy's condition. It will begin with manufacturing and services PMI indices and conclude with the composite PMI. A reading above 50 indicates economic expansion, while a decline below this level signals recession. The key element of the analysis will be the composite PMI, which combines data from both sectors and provides a more averaged assessment of overall business conditions.

In addition, weekly initial jobless claims data will be released. A decline in new claims indicates a strengthening labor market and falling unemployment, which is a positive signal for the economy and the US dollar. Conversely, an increase in this indicator may suggest slowing economic growth and rising labor market stress.

As for the intraday strategy, I will mainly rely on implementing Scenarios No. 1 and No. 2.

Buy Signal

Scenario No. 1: I plan to buy USD/JPY today when the entry point is reached around 159.81 (green line on the chart), with a target of 160.19 (thicker green line on the chart). Around 160.19, I will exit long positions and open short positions in the opposite direction (targeting a 30–35 point move in the opposite direction). A rise in the pair today may occur if the US and Iran take a hardline stance.Important: Before buying, make sure the MACD indicator is above the zero line and just beginning to rise from it.

Scenario No. 2: I also plan to buy USD/JPY if there are two consecutive tests of the 159.63 level while the MACD indicator is in the oversold zone. This would limit the pair's downward potential and trigger a reversal upward. A move toward the opposite levels of 159.81 and 160.19 can be expected.

Sell Signal

Scenario No. 1: I plan to sell USD/JPY after a break below the 159.63 level (red line on the chart), which would lead to a quick decline in the pair. The key target for sellers will be 159.17, where I will exit short positions and immediately open long positions in the opposite direction (expecting a 20–25 point rebound). Pressure on the pair may return today if positive news emerges from the Middle East.Important: Before selling, make sure the MACD indicator is below the zero line and just beginning to decline from it.

Scenario No. 2: I also plan to sell USD/JPY if there are two consecutive tests of the 159.81 level while the MACD indicator is in the overbought zone. This would limit the pair's upward potential and trigger a downward reversal. A decline toward the opposite levels of 159.63 and 159.17 can be expected.

Chart Notes

• Thin green line – entry price for buying the trading instrument;
• Thick green line – estimated Take Profit level or area to lock in profits, as further growth above this level is unlikely;
• Thin red line – entry price for selling the trading instrument;
• Thick red line – estimated Take Profit level or area to lock in profits, as further decline below this level is unlikely;
• MACD indicator – when entering the market, it is important to consider overbought and oversold zones.

Important: Beginner Forex traders should be very cautious when making entry decisions. Before major fundamental reports are released, it is best to stay out of the market to avoid sharp price fluctuations. If you decide to trade during news releases, always set stop-loss orders to minimize losses. Without stop-losses, you can quickly lose your entire deposit—especially if you do not use proper money management and trade large volumes.

And remember: successful trading requires a clear trading plan, like the one outlined above. Spontaneous decision-making based on current market conditions is an inherently losing strategy for intraday traders.