Risk-Off Sentiment Lifts JPY, CHF as Geopolitical Tensions Weigh on USD

A broad risk-off wave is sweeping across global markets ahead of the European session on May 15, reversing the optimistic tone set by Wall Street's record highs in the prior session. Safe-haven currencies including the Japanese yen and Swiss franc are seeing inflows as traders reassess risk exposure amid escalating Middle East conflict and uncertainty surrounding President Trump's high-stakes visit to China. The USD/JPY pair is under pressure as demand for the yen intensifies, while EUR/USD is seeing mixed flows as European traders digest the shifting sentiment landscape. The pivot from risk-on to risk-off highlights the fragility of recent equity-driven optimism, with geopolitical developments now taking center stage. Gold is also benefiting from the flight to safety. Traders should monitor developments from Trump's China visit closely, as any signals on trade relations could rapidly shift currency dynamics. Key support for USD/JPY sits near recent session lows, while resistance in EUR/CHF may cap upside amid safe-haven demand. Near-term volatility is expected to remain elevated across major pairs as markets weigh geopolitical risk against recent economic momentum.