Recently, we anticipated a bearish swing in the short-term for USD/JPY as it tagged a key resistance. This bearish swing indeed materialized and almost tagged our target of around 108. Now, it is testing a key support and challenging the recent bullish momentum.USD/JPY Daily Chart(click to enlarge)Support and Momentum:- The area around 108 is a key support/resistance area. - Bullish momentum would keep the RSI above 40 as well.- This is where we can anticipate some buying, and we are seeing some. Bearish Scenario:- A break below 108 would suggest that bulls are NOT in control.- Furthermore, the RSI is right around 40. If it falls below 40, we have a loss of the prevailing bullish momentum from April-May. - Now, a hold above 108 however is not a strong bullish sign yet. If price pops up and holds under 110, we might still have a bearish scenario. Bullish Scenario:- A hold above 108 and a return above 110 on the other hand would suggest that bulls are indeed in charge. - In this bullish scenario, we can see a run towards 114.