** KEY POINTS **** 1-Dollar hits new 2024 low against yen. 2-Bank of Japan seeks higher rates. 3-Federal Reserve seeks lower rates. Price action in the volatile dollar-yen pair rekindled enthusiasm for technical analysis with a looming battle at a long-term support zone. -USD/JPY extends its losing streak within a descending channel, suggesting a confirmed bearish bias. -The momentum indicator 14-day RSI suggests an oversold situation and a potential for an upward correction soon. -The pair tests the 14-month low at 140.25, followed by the lower boundary of the channel at the 138.50 level. The USDJPY pair continues to decline for the fifth Consecutive Day and also touched a fresh 2024 low and bounced right back up as traders reacted to something seen only on the chart. A double bottom pattern, where the price falls to a low that has previously acted as support, emerged on the daily time frame. The dollar-yen slipped on Monday to ¥140.20 — a level last used as support on December 28 — and broke slightly below it. What matters now is who will have the upper hand — the bears or the bulls? The Federal Reserve is getting ready to cut interest rates this week for the first time in about four years. Presently, the benchmark rate in the US is sitting at 5.5% but expectations point to a cut in the ballpark of 25 basis points to 50 basis points. Prepare your trades for sweeping volatility in the lead-up to Wednesday when the Fed will announce its rate cut.