Earlier in the week, we discussed the bullish implications of price action in USD/JPY after Friday's Non-Farm Payroll report. But we also noted an overall bearish structure. The main criteria for further upside was a break above the 111.50-111.60 resistance. We noted that "in fact, with price under the 111.50-60 area, the structure is still bearish as we begin the week". Indeed, price did NOT break this resistance and instead retreated sharply from it.USD/JPY 4H Chart(click to enlarge)Bearish Breakout:- The 4H chart shows the bullish attempt after the NFP. - It shows that this bullish attempt was stopped at the 111.50-111.60 resistance area, again.- The following downswing then broke the common support at 110.10 and eventually pushed below 110 as well.Support Factors:- The first key support to monitor is around 108.70, the 50% retracement level. The 200-day simple moving average is also looming around here.- Then the 107-107.50 area represents a resistance that could turn into support.- Finally, the 61.8% retracement level around 106.30-106.40 could be key support as well.- I think we should essentially keep our eyes around the 108 area. - If price and the daily RSI shows a bullish divergence, we should anticipate a strong bullish swing that might revive the bullish trend we saw at the end of 2016.