USD/JPY, EUR/USD React as US-Iran Conflict Drives Safe-Haven Flows

Escalating geopolitical tensions between the US and Iran are dominating market sentiment, driving sharp moves across forex markets as crude oil prices spike higher on disruption to key transit routes. The risk-off environment has triggered significant safe-haven demand, boosting JPY and CHF against the US dollar and risk-sensitive currencies. USD/JPY has come under downward pressure as Japanese yen buying intensifies, while EUR/USD faces mixed signals as European energy vulnerability offsets euro safe-haven positioning. Commodity-linked currencies including AUD, CAD, and NZD are experiencing divergent moves, with CAD finding support from elevated oil prices while AUD and NZD weaken on deteriorating global growth expectations. Earnings season adds another layer of complexity, with corporate results failing to offset geopolitical headwinds. Traders should closely monitor oil price developments and any diplomatic signals, as further escalation could accelerate JPY and CHF appreciation. Support levels in USD/JPY and resistance in USD/CHF are being tested amid elevated volatility conditions.