USD/JPY Pressured as Tech Selloff Sparks Risk-Off Flows Globally

USD/JPY faces downward pressure as renewed volatility in the global tech sector triggers broad risk-off sentiment, driving safe-haven demand for the Japanese yen. Concerns surrounding the sustainability of artificial intelligence valuations have rattled equity markets worldwide, prompting investors to rotate out of risk assets and into traditional havens. The selloff, amplified by a rout in chipmaker stocks led by Samsung, has weighed on US equity futures and pushed traders toward defensive positioning. The dollar index is showing mixed signals, with safe-haven demand partially offset by declining US Treasury yields as recession fears resurface. AUD/USD and NZD/USD are also under pressure as risk-sensitive commodity currencies soften amid deteriorating global sentiment. Oil prices have climbed higher, adding a layer of complexity for energy-importing economies. Traders should monitor upcoming US economic data releases and Federal Reserve commentary for further directional cues. Near-term, elevated volatility is expected to persist, with USD/JPY likely testing key support levels as risk appetite remains fragile across global markets.