USD/JPY, Oil-Linked Pairs Slide as Middle East Tensions Spike Crude

Risk-off sentiment has gripped global markets as an ongoing Middle East stalemate drives crude oil prices sharply higher, weighing on equities and risk-sensitive currencies. The spike in oil prices is creating divergent impacts across forex markets — commodity-linked currencies such as CAD and NOK are finding support, while net energy importers like Japan face additional headwinds, keeping USD/JPY volatile. Mixed corporate earnings have compounded the negative mood, and traders are positioning cautiously ahead of upcoming central bank decisions, which could further amplify volatility. Safe-haven flows are benefiting the Japanese yen and Swiss franc, with USD/CHF and EUR/JPY both trending lower. For USD/JPY, support is seen near the 152.00 level, while resistance sits around 154.50. EUR/USD is also indirectly affected as risk aversion tends to favor dollar strength in the short term. Traders should monitor geopolitical headlines closely, as any escalation or de-escalation in the Middle East could trigger sharp moves across oil-correlated and safe-haven pairs.