USD/JPY and FTSE 100 in Focus as Risk Sentiment Drives Markets

USD/JPY remains a key pair to watch as traders navigate a complex macro landscape shaped by divergent central bank policies and shifting risk appetite. The pair has been trading in a volatile range, with the Bank of Japan's cautious approach to policy normalization contrasting with the Federal Reserve's data-dependent stance. Crude oil prices, tracked via WTI futures, continue to influence broader market sentiment and the US Dollar Index, which has shown mixed signals in recent sessions. The FTSE 100's performance provides additional context for GBP crosses, as UK equity strength or weakness often correlates with sterling positioning. Technical analysis on USD/JPY highlights key resistance near recent highs, while support levels are being tested amid headline-driven volatility. Traders should watch upcoming US economic releases and any shifts in BOJ rhetoric for directional cues. The interplay between equity risk sentiment and yen safe-haven demand will likely dictate near-term USD/JPY trajectory, making cross-asset monitoring essential for forex positioning.