USD/JPY drops as Nvidia selloff triggers risk-off sentiment in markets

USD/JPY has declined 0.5% to 149.20 as equity market reversals sparked safe-haven flows into the Japanese yen. The S&P 500 erased a 70-point gain to trade down 14 points, with Nvidia shares falling 1.2% to $183.50 after initially rising 2% in premarket trading. The sudden reversal occurred without any clear catalyst, raising concerns about underlying market stability. Technical indicators suggest further downside risk as the pair broke below the 149.50 support level that held during yesterday's session. The risk-off sentiment has benefited traditional safe havens, with the yen gaining against most major currencies. Traders are closely monitoring the 149.00 psychological level as the next key support, while resistance now sits at 149.80. The correlation between equity weakness and yen strength remains intact, suggesting continued volatility ahead as market participants reassess risk positions.