USD/JPY holds bullish stance as indices hit records, risk-on prevails

Risk appetite remains elevated across global markets with major equity indices reaching new record highs, supporting traditional carry trades and risk-sensitive currency pairs. The Nasdaq 100 and S&P 500 continue their upward trajectory, creating a favorable environment for higher-yielding currencies against safe havens. USD/JPY maintains its bullish momentum, benefiting from the broad risk-on sentiment and persistent yield differentials between US and Japanese government bonds. Gold's strength above $4,000 reflects a unique dynamic where both risk assets and traditional safe havens are attracting buyers, suggesting abundant market liquidity. The Japanese yen remains under pressure as the Bank of Japan maintains its ultra-loose monetary policy stance, contrasting with the Federal Reserve's relatively hawkish positioning. Technical analysis shows USD/JPY defending key support levels, with buyers stepping in on any minor pullbacks. This persistent bid tone suggests further upside potential, particularly if equity markets maintain their record-breaking performance.