USD/JPY, Gold Surge as Iran Threatens Strike on US West Coast

Geopolitical risk has spiked sharply following reports that Iran has threatened to strike the US west coast, triggering significant safe-haven flows across forex and commodity markets. The US dollar is facing mixed dynamics — strengthening against risk-sensitive currencies like AUD and NZD while weakening against traditional safe havens such as the Japanese yen and Swiss franc. USD/JPY is likely seeing downward pressure as traders flock to the yen, while USD/CHF faces similar selling. Gold, a key geopolitical hedge, is expected to surge on the escalation. Crude oil prices are also likely bid higher given Iran's central role in global energy supply and the threat of broader Middle Eastern conflict. Traders should monitor XAU/USD for a potential breakout above recent resistance levels, while USD/JPY may test key support zones near recent lows. Risk-off sentiment could dominate in the near term, with volatility indices expected to spike. Positions in risk currencies such as AUD/USD and NZD/USD may face acute selling pressure as markets reprice geopolitical tail risk.