USD/JPY Slides to 149.00 as US Shutdown Risk Boosts Safe-Haven Yen

USD/JPY tumbled 0.7% to 149.00, marking the lowest level in three weeks as US government shutdown risks intensified safe-haven demand for the Japanese yen. The dollar weakened broadly with EUR/USD climbing to 1.0590 and AUD/USD reaching 0.6840, while defensive assets gained traction. Congressional deadlock over spending bills raised concerns about potential economic disruptions and delayed data releases that could impact Federal Reserve decisions. The yen's strength was amplified by its traditional safe-haven status during US political uncertainty, with USD/JPY breaking below the critical 149.50 support level. Technical momentum indicators turned bearish, with the RSI dropping below 40 and MACD signaling further downside potential toward 148.50. USD/CAD bucked the trend, rising slightly to 1.3940 on separate Canadian dollar weakness. Traders are advised to monitor Washington developments closely, as any breakthrough in negotiations could trigger a swift yen reversal.