USD/JPY Vulnerable as Tech Weakness Weighs on Risk Sentiment

USD/JPY faces downward pressure near 149.50 as technology sector weakness dampens risk appetite ahead of crucial US Treasury auctions this week. NVIDIA's 3.5% decline led a broader tech selloff, pushing the S&P 500 down 0.8% and strengthening the yen's safe-haven appeal. The pair has retreated from last week's high of 150.20, with technical indicators suggesting further downside risk. This week's Treasury auctions of 2-year, 5-year, and 7-year notes totaling $183 billion could significantly impact dollar funding costs and yield differentials. Japanese investors remain net sellers of foreign bonds, adding to yen strength as repatriation flows continue. Support levels emerge at 149.00 (50-day MA) and 148.50 (previous week's low), while resistance at 150.00 now caps upside attempts. Traders anticipate increased volatility around auction results, with poor demand potentially accelerating USD/JPY losses toward the 148.00 handle.