USD/JPY Volatile as Trump Signals Massive Iran Strike, Risk-Off Surges

Risk-off sentiment is intensifying across forex markets after President Trump told Axios he is 'close to making a decision' on launching a military strike against Iran that would exceed the scope of previous operations. The statement marks a significant escalation in geopolitical risk, driving sharp moves in safe-haven assets. The Japanese yen and Swiss franc are strengthening against the dollar and risk-sensitive currencies as traders rapidly de-risk portfolios. USD/JPY is under pressure from aggressive yen buying, while AUD/USD and NZD/USD face selling pressure as risk appetite collapses. Oil prices are spiking on fears of supply disruptions through the Strait of Hormuz, adding inflationary concerns that complicate central bank policy outlooks. Gold has surged past key resistance levels on haven demand. Traders should expect elevated volatility and widened spreads across major and cross pairs. Near-term direction will depend heavily on whether military action materializes. Position sizing and risk management are critical in this environment.