USD/JPY: Dollar Falls to Fresh 2024 Low Against Yen, Pair Nears Double Bottom

Bank of Japan policymaker said earlier today officials are ready to bump interest rates if inflation remains on track.

• The USDJPY pair drifted to a 2024 low early Wednesday as forex speculators piled long bets on the Japanese yen after some official comms. The dollar-yen exchange rate hit ¥140.90 before traders scooped it up and slingshot it back above the ¥141.00 mark. The dollar has lost 13% from its peak valuation against the yen this year. What weighed on the pair’s rate this morning was a speech by Bank of Japan policymaker Junko Nakagawa who said that the bank will continue to hike interest rates if inflation keeps moving lower.
• ”Given real interest rates are currently very low, we will adjust the degree of monetary support, from the standpoint of sustainably and stably achieving our 2% inflation target, if our economic and price forecasts are met," Nakagawa said in speech to business leaders earlier today. The Bank of Japan raised interest rates in July to their highest level since 2008 in a move away from the negative interest rate regime.
• The technical analysts in here might be curious to draw a straight horizontal line under today’s low. What they’ll find out is a potential double bottom pattern with a previous low right at the turn of the year. Back in late December-early January, the dollar-yen pair slipped to the level of ¥140.90 with a low of ¥140.10. The range has now turned into a strong long-term support and might present trading opportunities for both sides of the trade.