It is now very clear that at this stage there won’t be a USD/JPY rally. It appears that the bears finally took the initiative in their hands and the long term downward trend has been renewed.
If that assessment is correct, then instead of the expected rally to 119+ we may see a significant drop which could lead the pair to levels forgotten since 2013, i.e. 95.00 – 94.00 or even much lower.
The first support is around 108.00 - 107.50 and the pair may rebound from it to the upside to test the resistance zone around 109.50 – 109.00.
In case it breaks out below that first support the next strong support is the zone around 100.50 – 99.50.