USD/JPY Rides Risk Wave as Nvidia's AI Beat Lifts Sentiment

Wall Street's AI-driven rally, sparked by Nvidia's stronger-than-expected data centre revenue and Blackwell ramp commentary, is spilling over into currency markets. USD/JPY is drawing support from renewed risk appetite as equity investors rotate into growth names, reducing demand for the yen's traditional safe-haven bid.

The pattern is familiar: when mega-cap tech outperforms and volatility compresses, carry trades funded in yen become more attractive, since traders borrow cheap JPY to chase higher-yielding dollar assets. Nvidia's guidance beat and bullish AI capex outlook are reinforcing that dynamic this week.

Should risk sentiment sour on any disappointment from other chipmakers reporting alongside Nvidia, expect quick unwinds that could see yen buying return sharply, making USD/JPY highly sensitive to the broader tech earnings tape.