USD/JPY rises as risk-on sentiment boosts dollar amid Russell 2000 rally

USD/JPY advanced 0.45% to 156.20 during Monday's session, supported by strong risk appetite following bullish sentiment in US equity markets. The Russell 2000 index reaching 'heavy buy' territory has reinforced dollar strength against safe-haven currencies. Gold fell 0.8% to $2,745 per ounce, while silver dropped 1.2% to $30.85, confirming the risk-on environment. The FTSE 100 gained 0.6%, adding to global equity momentum. Japanese yen weakness persists despite recent verbal intervention warnings from Japanese officials, with the pair approaching the critical 156.50 resistance level. Technical indicators suggest continued upward pressure, with the 14-day RSI at 68, nearing overbought territory. Traders are monitoring the 157.00 psychological barrier, which could trigger renewed intervention concerns. Support sits at 155.50, aligned with the 20-day moving average, offering a cushion for any pullbacks in the risk-on rally.