USDJPY Forecast:

The USDJPY continued its bearish correction yesterday. On h4 chart below we can see that price break below 88.80 support area and now ready to test the trendline support (red) which is a serious threat to the bullish outlook. The bias is bearish in nearest term but the situation is very tricky. Remember that the Japanese government wants a weaker Yen, which is a fundamental support for me, which potentially limit the bearish momentum. Immediate support at 87.80/50 area. Break below that area could trigger further bearish momentum technically but may trigger some speculation and fear that Japanese government will intervene the market. Initial resistance at 88.80. Break above that area should trigger further bullish momentum towards 89.50 area.