USD/JPY Safe-Haven Demand Builds as Fear Index Flashes Red
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Risk sentiment has deteriorated sharply, with CNN's Fear & Greed index swinging firmly into fear territory as the AI-driven rally shows signs of fatigue.
That shift matters for USD/JPY because the yen historically strengthens when global risk appetite fades, as leveraged carry positions get unwound and capital seeks defensive shelter.
Traders watching the pair should treat equity volatility as a leading indicator this week; a continued slide in risk assets would likely extend yen strength regardless of incremental US data surprises.