USD Index Resilient Despite Oil Sell-Off; USD/JPY Holds Firm

The US Dollar Index showed notable resilience during Monday's session, shrugging off a sharp sell-off in crude oil prices that typically pressures the greenback through shifting risk sentiment channels. WTI crude futures extended losses as geopolitical tensions eased following the US decision to lift its naval blockade, reducing the energy supply risk premium. Despite the oil decline, the dollar maintained its footing against major counterparts, with USD/JPY holding firm as yield differentials between US Treasuries and Japanese government bonds continued to favor the greenback. EUR/USD remained under modest pressure as traders weighed the diverging monetary policy outlooks between the Federal Reserve and the European Central Bank. The dollar's ability to withstand the commodity downturn suggests underlying demand driven by relative economic outperformance and carry trade dynamics. Key resistance for the Dollar Index sits near the recent highs, while support is anchored around the 104.50 area. Traders should monitor upcoming US retail sales and Fed commentary for directional cues on dollar positioning this week.