USD/JPY plunges 150 pips in dramatic reversal on risk-off sentiment

USD/JPY has experienced a sharp reversal, plummeting 150 pips (approximately 1.0%) to 154.20 in a dramatic turnaround that caught many traders off guard. The pair's decline accelerated during the European session as risk-off sentiment gripped markets, driving flows into the safe-haven yen. The move represents a significant technical breakdown, with USD/JPY breaching multiple support levels including the 155.00 psychological level and the 50-day moving average at 154.80. Volume surged to 1.5x daily average as stop-loss orders were triggered below 155.50. The rapid decline suggests a potential shift in market positioning, with traders unwinding long dollar positions amid growing concerns about global trade tensions. Immediate support now lies at 154.00, while resistance has formed at the former support of 155.00. The velocity of this move indicates heightened volatility ahead, particularly with upcoming US economic data releases.