USD/JPY plunges as Israel-Iran conflict drives yen safe-haven demand

USD/JPY has fallen sharply by 1.2% (180 pips) to 148.50 as Israeli strikes on Iran's Natanz nuclear facility triggered a massive flight to safe-haven assets. The yen strengthened across all major pairs as risk-off sentiment gripped markets, with EUR/JPY down 1.5% and GBP/JPY falling 1.8%. Despite the IAEA confirming no radiation increase at the damaged facility, traders remain highly cautious about potential escalation. Oil prices surged 4.5% to $87.20/barrel on supply disruption fears, adding inflationary pressure that could complicate central bank policies. Technical indicators show USD/JPY breaking below the crucial 150.00 support level, with next support at 147.80 (50-day MA). Risk-sensitive pairs like AUD/USD and NZD/USD also declined 0.8% and 0.9% respectively. Traders should expect continued volatility as markets await Iran's response and monitor any further military developments in the region.