USDJPY Forecast:

The USDJPY attempted to push lower yesterday, bottomed at 89.26 but whipsawed to the upside and closed higher at 89.93 indicating a limited bearish momentum. The bias is neutral in nearest term as direction is unclear now but as you can see in my daily chart below, price still move inside the bearish channel so the bearish scenario should remains intact. Price is now testing the upper line of the bearish channel, give us a good technical set up and risk-reward ratio to short around the upper line with a tight stop loss above it. A violation to the bearish channel should be seen as bearish failure and potentially lead us into a new bullish phase at least towards 91.25 area. Initial support at 89.00 – 88.50.