USD/JPY retreats as bullish dollar positioning unwinds in FX markets

USD/JPY has declined 0.6% to 149.50 as excessive bullish dollar positioning begins unwinding across foreign exchange markets. Commitment of Traders data shows speculative long positions in USD reached 18-month highs last week, triggering profit-taking activity. The Nasdaq 100's 1.8% decline and S&P 500's 1.2% drop have accelerated safe-haven yen buying. Gold/USD remains subdued near $1,968, failing to benefit from risk-off sentiment due to persistent dollar strength in other pairs. Technical analysis reveals USD/JPY broke below the key 150.00 psychological level and 20-day moving average at 149.80. Next support lies at 148.50 (38.2% Fibonacci retracement), while resistance has formed at 150.50. Market positioning suggests further unwinding possible, particularly if upcoming US economic data disappoints or global risk sentiment deteriorates further.