USD/JPY Is Still Testing The Support Zone

USD/JPY continues making attempts to break out below the first support zone>>>  at 108.00  - 107.50. For the moment the pair has reached 108.04 and I think it is possible it will continue testing that zone. In my opinion, if it breaks out below it and remains below it we could expect a continuation of the depreciation toward the next support at 50% Fibo (at 100.50 – 99.50) of the impulse that began in October 2011 (at 75.564) and ended in June 2015 (at 125.854) on the monthly time frame.

The alternate scenario is for a new rally to 109.30 – 109.50 which could completely neutralize the attempt for a depreciation and return the pair in the consolidation that formed for the past two weeks.