USD/JPY faces pressure as risk sentiment wavers amid AI bubble concerns

USD/JPY remains range-bound near 150.20 as mixed US equity performance and cautious investor sentiment weigh on risk appetite. Major US indices showed divergent patterns yesterday, with tech shares posting marginal gains while broader market momentum stalled. The ongoing debate about potential AI bubble risks has kept traders defensive, limiting appetite for higher-yielding assets. European equities managed to grind higher, but conviction remains low across global markets. The pair's movement reflects broader market uncertainty, with traders awaiting clearer directional cues. Technical indicators suggest consolidation within the 149.80-150.50 range, with the 200-day moving average at 149.95 providing near-term support. A decisive break above 150.50 could target 151.00, while failure to hold above 149.80 might accelerate declines toward 149.20. The calm market conditions suggest potential for increased volatility as year-end positioning intensifies.