USDJPY Forecast

The USDJPY failed to continue its bearish momentum yesterday, unable to stay consistently below 79.35/52 support area and hit 79.81 earlier today. The bias is neutral in nearest term with a little upside bias especially if price able to make a clear break and daily close above 80.00 testing 81.00 – 81.80 resistance area. On the downside, nearest key support remain around 78.98. A clear break and daily close below that area could trigger further bearish pressure testing 78.27 even retesting the record low at 75.56. Price has been moving sideways without clear momentum and direction in the last two weeks. Technically, the record low at 75.56 is a strong candidate for a bottom so I still prefer a bullish reversal scenario.  However, on fundamental point of view, the risk aversion sentiment seems to drive the market now, pushing so-called safe haven currencies like Yen and US Dollar stronger.

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