The Perspective For A USD/JPY Drop Is To 101.00 And 95.00

On the monthly time frame, despite all my hopes for a rally, the USD/JPY pair formed two spinning top bars after which it began depreciating. These two spinning tops, as it often happens, marked the beginning of the depreciation which may continue in the long term.

The support on the W1 time frame is at 109.50 and until then there are about 90 more pips left. My expectation is that the pair will reach it over the next few days or until the end of the week.

The next support levels are at 108.00 and 107.00, and if the pair falls below them the long term perspective is for a drop to 101.00 and 95.00 which are respectively 50% Fibo and 61.8% Fibo of the rally from October 2011 (75.564) to June 2015 (125.854).