USD/JPY drops back in Asian trading

Since my last update here on January 17, the USD/JPY has traded in a range covered by 146.66 to 148.80. That high was set on January 19 and the low seen last week was set on January 24. The rebound from that low came into the weekend, when the dollar reached 148.21. It closed out the week on Friday at 148.15. The recovery of the 146.66 low was characterised by a series of higher lows from Wednesday onwards. That is a positive in terms of the immediate price action and the overall recovery from the December 28 low, at 140.25 remains intact. The next resistance level of note is now at 149.16 ahead of the high seen last year at 151.91. It is important to remember; that the big double top ( at 151.95 and 151.91) is still guarding the topside in the longer term. That said, that double top has already delivered a substantial move lower (to 140.25) and the more the dollar recovers, the move the chance of it being tested might be. Overnight the USD/JPY has dropped back from an earlier high at 148.34, to below 148. The low seen so far has been set at 147.84. It is currently trading at 147.87