USDJPY Forecast:

The USDJPY attempted to push lower on Friday, bottomed at 84.79 but further bearish momentum was rejected as price whipsawed to the upside, hit the top at 87.00 and closed at 86.46. Beside the hammer candlestick pattern which proved to be a good signal of bullish rebound, the Japanese government threat to jump into the market to weaken the Yen seems effective so far. The bias is bullish targeting 87.50 in nearest term as I am expecting market continue to respond further to the intervention threat thus potentially bring the pair higher. Immediate support at 86.30. Break below that area should trigger further bearish momentum but I will not place a short position under the intervention threat although technically I still prefer a bearish scenario in longer term.