USD/JPY volatility spikes with 130-pip swings on weak US data

USD/JPY experienced extreme volatility this week, with three consecutive 130-pip moves: dropping Monday, rebounding Tuesday, and falling again Wednesday to close around 149.20. The pair's dramatic swings mark a departure from its historically stable trading patterns. Wednesday's decline was triggered by disappointing US economic data, with ADP employment coming in below expectations and ISM Services PMI showing unexpected weakness. The selling pressure intensified during the US session as traders digested the data's implications for Federal Reserve policy. Technical indicators suggest the pair is testing key support at 149.00, with resistance now established at 150.50. The heightened volatility reflects growing uncertainty about US economic resilience and potential shifts in the Fed's monetary stance. Traders should prepare for continued choppy price action as markets reassess the dollar's strength amid mixed economic signals.