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USD/JPY Rebounds; Previous Support is Resistance

As expected, USD/JPY has been falling after breaking below a consolidation range support. We also noted that the first area to anticipate support would be around 105.50, and indeed we saw the market support $USDJPY here.

USD/JPY Daily Chart

(click to enlarge)

Support, Resistance:
- We can see that price indeed rebounded when tagging the 105.50 level.
- Now, if USD/JPY continues to rebound, we should monitor the 108-108.20 area for resistance. 
- But even if price pushes back up to 110, the overall market would be bearish. 
- We should also monitor the RSI. If the market is indeed bearish, it should not pull back above 60. 
- If the market indeed holds under 110 and then dips back towards the 105.50 support, we should NOT reply on the support to hold again. 
- If USD/JPY does break below 105.50, anticipate a slide towards 100 and the 99.05, 2016-low.