Four goals in five games from Greig Spence have helped Cowdenbeath out of the bottom two, and the 23-year-old striker feels his team should be challenging for a top-four finish this season.
His bullet header in 71 minutes gave them all three points and knocked Forfar off the top of the table.
Forfar boss Dick Campbell had no complaints at the result.
“We did well enough in the opening half hour but could not convert some decent openings and then were hit by the opener,” he said.
“Cowden have had a difficult time over recent weeks and you have to try to ensure you keep the pressure on them, but we were a bit sloppy at times, and losing that goal changed the whole complexion of the game.
“Yes we managed to pull that back but we were caught out again at the second goal and just never really did enough to take anything from the match.”
Former Raith and Alloa striker Spence said: “I felt we deserved to win the game for we worked really hard and created some outstanding chances.
“We have a good squad here and, while we may have lost our last two away games, we created quality openings and scored goals and drew with Peterhead, and now have beaten Forfar, so I feel we can build on that and start to get the points on the board to move into the top half of the table.
“We have some really talented players and our aim has to be contesting one of the play-off spots come May.”
Forfar had started the game like league leaders, and Iain Campbell’s raking 30-yarder hit the bar, while Chris Templeman and Gavin Swankie went close.
But gradually Cowdenbeath started to take over and took the lead in 28 minutes when Rangers loan signing Andy Murdoch did the spadework and played the ball into Spence on the penalty spot. He deftly laid it back to Gordon Smith, who made it two goals in two games to put the Fifers ahead.
The Loons hit back four minutes into the second period when Gavin Swankie coolly fired past Jamie Sneddon from 14 yards out, but it did not seem to fire up the visitors and in 71 minutes Spence latched on to Smith’s pin-point cross to head in what proved to be the winner.
Cowden player/boss Colin Nish said: “I felt we maybe did not start that well, but once we began to put our passing game together we created some good chances.
“Even when we lost a goal early in the second-half we kept asking questions of Forfar, and we scored a cracking second goal to win the game.”
Nish wants his team to go to Brechin on Saturday and come home with their first away win.