USDJPY, USDCHF slump as USD sell-off accelerates post-trendline breaks

The US dollar has extended losses against the Japanese yen and Swiss franc, with USDJPY plunging 1.2% to 138.40 and USDCHF down 0.8% to 0.8980. The sharp sell-off follows the breach of key trendline support levels in both pairs, triggering stop-loss orders and inviting further technical selling. The broader risk-off sentiment in global markets, driven by concerns over the US debt ceiling and Chinese economic slowdown, has dampened demand for the greenback. USDJPY now eyes support at 137.50, with a break below exposing the 135.00 handle. For USDCHF, the 0.8950 level acts as immediate support. The US Dollar Index (DXY) has also come under pressure, sliding 0.6% to 101.80. A sustained break below the 102.00 mark could signal a deeper correction in the USD, potentially benefiting EURUSD and GBPUSD.