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USD/JPY Forex Signal – April 22, 2025
Market Overview
USD/JPY is trading around 153.20 as of the European session on April 22, 2025. The pair remains under bullish pressure due to the divergence between U.S. and Japanese monetary policy. The Bank of Japan (BoJ) maintains its ultra-loose stance, while the Federal Reserve’s cautious tone and softening U.S. data have slightly capped recent Dollar strength.
Despite a pullback in U.S. bond yields, the pair continues to find support above the 152.50 level, forming a potential base for the next leg higher.
Trade Setup Summary
- Currency Pair: USD/JPY
- Signal Type: Buy
- Entry Price: 153.20
- Take Profit: 154.00 (Primary Target), 155.00 (Extended Target)
- Stop Loss: 152.20
- Time Frame: 1–3 days
Fundamental Analysis
Bank of Japan Outlook
- BoJ officials reaffirm commitment to easy monetary policy.
- Core inflation in Japan remains below 2%, keeping rate hikes off the table.
U.S. Dollar Factors
- U.S. Treasury yields eased slightly but remain elevated compared to Japan.
- Fed officials are cautious, but inflation remains sticky.
- Safe-haven flows into JPY are limited due to risk-on sentiment in global equities.
Technical Analysis
Moving Averages
- USD/JPY trades above the 50- and 100-period SMAs on both 4H and daily charts.
- Upward slope on both indicators confirms bullish structure.
RSI
- RSI currently at 60 on the 4H chart, with room for further upside.
MACD
- MACD shows a bullish crossover with expanding histogram bars.
Fibonacci Levels
- Price found support near 152.50 (38.2% retracement of recent rally).
- Next fib level and target aligns with 154.00 (61.8% extension).
Price Action
- Bullish engulfing candle formed on the hourly chart near 152.80.
- Price structure supports higher highs and higher lows.
Entry Strategy – April 22, 2025
📌 Buy USD/JPY at: 153.20
🎯 Take Profit 1: 154.00
🎯 Take Profit 2: 155.00
🛑 Stop Loss: 152.20
Confirmation by 1H close above 153.25. Use trailing stop once price exceeds 153.80.
Risk Management Tips
- Avoid overexposure ahead of BoJ commentary or U.S. data.
- Adjust position size based on volatility (ATR > 60 pips).
- Do not exceed 2% of account equity per trade.
Market Sentiment
- Market sentiment is broadly bullish on USD/JPY due to policy divergence.
- Retail sentiment shows mixed positioning, increasing breakout probability.
Related setup: XAU/USD signal – April 22, 2025 reflects continued USD momentum.
External Resources
Conclusion
The USD/JPY signal for April 22, 2025 shows a well-aligned setup for continuation to the upside. With supportive fundamentals, a clear technical base, and strong bullish sentiment, traders have an opportunity to capitalize on the momentum above 153.20.
Targets at 154.00 and 155.00 provide logical zones to lock in profit over the next few sessions.
