The “Presidents’ Day” quiet is over, and the volatility has returned with a vengeance. As U.S. liquidity floods back into the market, the USD/JPY is currently engaged in a high-stakes battle at the 152.00 psychological support level.
At ForexAdvocate, we warned yesterday that this was the “Battleground of 2026,” and the price action today confirms it.
The Technical Breakdown
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The Retest: After dipping to 151.92 in early London trading, the pair has bounced slightly but lacks conviction.
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The RSI Divergence: On the H4 chart, the Relative Strength Index (RSI) is showing a “hidden bullish divergence,” suggesting a temporary relief rally could be in play.
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The Trap: A “fake-out” below 152.00 followed by a quick recovery is the classic institutional move to hunt retail stop-losses.
The Advocate’s Strategy
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Wait for the 4-Hour Close: Do not enter a “Sell” until we see a full 4-hour candle close below 151.85.
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Target: If 151.85 breaks, the next station is 150.30 (the 200-day Moving Average).
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Risk: If the U.S. 10-Year Treasury Yield surges past 4.10% today, expect 152.00 to hold, sending the pair back toward 154.00.