USD/JPY falls as dollar weakens broadly in European session, month-end flows

The US dollar declined against major currencies during European morning trade, with USD/JPY dropping 0.5% to 154.20 as month-end rebalancing flows accelerated selling pressure. The greenback faced broad-based weakness across G10 currencies, with the DXY dollar index falling 0.3% to 105.80. Month-end portfolio adjustments by institutional investors and asset managers contributed to dollar selling, as funds rebalanced their currency exposures. EUR/USD rose 0.4% to 1.0845, while GBP/USD gained 0.6% to 1.2720. The dollar's weakness comes despite relatively hawkish Fed communications, suggesting technical and flow-driven factors are currently dominating fundamentals. Key support for USD/JPY lies at 154.00, with a break below potentially accelerating losses toward 153.50. Traders should monitor end-of-month flows through Friday, as these could continue pressuring the dollar regardless of economic data releases.