Risk-Off Flows Drive JPY 0.4% Higher as US Strike Fears Mount

USD/JPY fell sharply by 0.4% to 149.20 as mounting fears of US military strikes on Iran triggered significant risk-off flows into the Japanese yen. Equity futures tumbled with S&P 500 futures down 1.2%, while VIX volatility index spiked above 18, reinforcing haven demand. EUR/JPY dropped 0.5% to 161.50, and GBP/JPY declined 0.45% to 188.70 as the yen strengthened broadly. Japanese officials remained silent on intervention despite the rapid yen appreciation, suggesting comfort with current levels amid geopolitical uncertainty. The move accelerated after breaking below the 149.50 technical support level, with momentum indicators turning bearish. Next support for USD/JPY lies at 148.80 (June low), while resistance has formed at 149.50 (former support turned resistance). Traders should expect continued yen strength if Middle East tensions escalate further, with potential for sub-148 levels if US military action materializes over the weekend.