FTSE 100 Hits Record High; USD/JPY, Gold, Nasdaq 100 in Focus

The FTSE 100 has surged to a record high, prompting profit-taking as long-positioned traders begin closing out positions at elevated levels. This milestone in UK equities has broader implications for forex markets, particularly for GBP crosses and risk-sensitive pairs. USD/JPY remains a key focus as yen weakness persists amid the Bank of Japan's cautious approach to monetary policy normalization. The Nasdaq 100's performance continues to influence risk appetite globally, with equity market strength typically supporting higher-yielding currencies against safe havens. Gold prices remain well-bid, reflecting an unusual dynamic where both risk assets and safe havens are finding buyers simultaneously, suggesting underlying market uncertainty despite the bullish equity environment. The FTSE 100's record run has been supported by the index's heavy weighting toward commodity and multinational companies benefiting from a relatively weaker pound. Traders should monitor whether profit-taking accelerates at current levels, which could trigger broader risk sentiment shifts affecting USD/JPY and gold positioning in the near term.