USDJPY Forecast

The USDJPY continued its bullish momentum yesterday and hit 85.51 earlier today in Asian session. The bias is bullish in nearest term testing 85.90. On monthly chart below we can see that 85.90 is not only a key intraday resistance to be tested, but also a key resistance from a long term outlook where a hammer candle stick bullish reversal formation is formed after hit a new 15 year low at 76.21 last month. A clear break above 85.90 would be a further validation to the bullish reversal scenario at least targeting 95.00. Immediate support at 84.70. A clear break below that area would lead us to neutral zone in nearest term but overall I prefer a bullish scenario at this phase.

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