USD/JPY Falls as BOJ Decision Looms Amid Rising Political Tensions

USD/JPY is experiencing heightened volatility as traders position ahead of the Bank of Japan's upcoming monetary policy decision, with the pair trading near critical support levels. Market participants are increasingly nervous about potential hawkish shifts in BOJ policy, which could end the era of ultra-loose monetary conditions and strengthen the yen significantly. Adding to market uncertainty, escalating political tensions in the Asia-Pacific region are driving safe-haven flows into the Japanese currency. The pair has broken below the 150.00 psychological level, with immediate support at 149.50 and resistance at 150.50. Technical indicators suggest bearish momentum is building, with the RSI dropping below 45. Traders should monitor BOJ Governor's comments closely, as any hints of policy normalization could trigger sharp yen appreciation. The combination of monetary policy uncertainty and geopolitical risks creates a challenging environment for USD/JPY bulls in the near term.