USD/JPY Drops Below 149.50 on US Government Shutdown Concerns

USD/JPY declined 0.5% to 149.40 as fears of a potential US government shutdown weighed heavily on the dollar. The pair broke below the key 150.00 psychological support level after Congressional negotiations stalled over budget disputes, raising concerns about fiscal stability. Japanese yen strength was further supported by safe-haven flows, with the DXY (Dollar Index) falling 0.3% to 105.80. Market participants are closely monitoring Washington developments, as a shutdown could delay critical economic data releases and complicate Federal Reserve policy decisions. Technical analysis shows immediate support at 149.20 (50-day moving average), with resistance now established at the broken 150.00 level. EUR/USD benefited from dollar weakness, rising to 1.0580, while gold prices advanced 0.6% to $2,745. Traders should prepare for increased volatility, particularly if shutdown talks fail, which could accelerate yen appreciation toward the 148.50 support zone.