USD/JPY faces pressure as AI concerns threaten market stability at Jackson Hole

USD/JPY remains vulnerable to downside pressure as markets approach the Jackson Hole symposium with growing concerns about AI-driven market valuations. The pair has been trading near 149.50, with the yen finding support from safe-haven flows amid questions about the sustainability of the tech-led rally. Gold has climbed 0.8% to $2,510 per ounce, reflecting increased risk aversion, while Brent oil trades steady at $79.30. The upcoming Jackson Hole meeting could prove pivotal for USD/JPY direction, as any dovish signals from the Fed regarding AI bubble concerns might accelerate yen strength. Technical indicators show USD/JPY testing support at 149.20, with a break below potentially targeting 148.50. Resistance sits at 150.00 psychological level. Traders should monitor Fed commentary on financial stability risks, as acknowledgment of overvaluation concerns could trigger broader risk-off moves benefiting the yen against high-beta currencies.