USD/JPY drops as Nvidia disappoints, risk-off sentiment strengthens yen

USD/JPY declined 0.5% to 146.20 during Asian trading as disappointing Nvidia earnings triggered risk-off sentiment across markets. The tech giant's shares fell 4% in after-hours trading despite beating quarterly estimates, with investors concerned about slowing growth rates and high valuations. The Japanese yen strengthened across the board as traders sought safe-haven assets, with EUR/JPY dropping 0.6% to 162.50 and GBP/JPY falling 0.7% to 192.80. Asian equity indices showed broad weakness, with the Nikkei 225 down 1.2% and KOSPI falling 0.9%. The risk-averse environment has pushed USD/JPY below its 50-day moving average at 146.75, with immediate support at 145.80. Traders are closely watching the 145.00 psychological level, which coincides with the 200-day moving average. Further tech sector weakness could accelerate yen strength, potentially testing August lows near 144.50.