USD/JPY has been consolidating since breaking below a key support at 108.00. Price has been ranging roughly between 107.10 and 109. $USDJPY Daily Chart(click to enlarge)Consolidation:- We can see that price held above this 107-107.10 area a couple of times, once in June and again in July.- On the other end, price failed to break 109 twice in July.- Price started the 8/1 session with a strong retreat from this resistance to almost support. The current session is extending this dip and cracking the support around 107.10. - I think the market is gearing up for a bearish breakout.1) Failed bullish attempt after a potential double bottom.2) Price remained below the 200-day simple moving average (SMA).3) The RSI held under 60, which reflects maintenance of the prevailing bearish momentum.4) Finally, the sharpness of this week's bearish reaction is a strong signal that the 107-107.10 support won't hold. - I think the downside will be towards the 104.50-104.60. USD/JPY Weekly Chart(click to enlarge)