The USD/JPY pair opened lower as traders reacted to the Financial Markets Authority's (FMA) pledge to 'monitor' market developments amid escalating tensions in the Middle East. Weekend clashes in the region caused significant opening gaps across global forex markets, with safe-haven assets like the Japanese yen gaining traction. The FMA's statement aimed to reassure investors but failed to counter immediate volatility driven by geopolitical risks. The decline in USD/JPY highlights increased risk-off sentiment, with investors favoring defensive currencies and assets. Traders are now closely watching how prolonged Middle East conflicts might impact global liquidity and central bank interventions. The yen's strength against the dollar could influence broader carry-trade unwinding and shift capital flows. For forex markets, the coming days will test whether the FMA's monitoring efforts stabilize sentiment or if geopolitical shocks dominate. Gulf investors should monitor safe-haven demand and potential yen-strengthening trends. Key levels to watch include USD/JPY's 150.00 psychological threshold and 148.50 support.

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