USD/JPY Steadies as BoJ Holds Rates; Oil Rally and Kospi Surge Lift Risk Tone

Global futures advanced on Thursday as multiple macro developments shaped cross-asset sentiment with notable implications for forex markets. The Bank of Japan held its monetary policy stance unchanged, keeping rates steady in a decision that weighed on the Japanese yen and supported USD/JPY as traders had partially priced in a more hawkish tilt. Meanwhile, a record surge in South Korea's Kospi index fueled broader risk appetite across Asian and European sessions, benefiting risk-sensitive currencies while pressuring traditional safe havens like the yen and Swiss franc. Crude oil prices jumped notably, providing a tailwind for commodity-linked currencies including the Canadian dollar and Norwegian krone. The earlier bond market bounce faded as yields edged higher, reinforcing dollar resilience against low-yielding counterparts. Traders should watch for follow-through in risk sentiment and oil price action, as sustained strength in crude could further support CAD while a reversal in equities would likely reignite demand for JPY. The BoJ's dovish hold maintains the wide rate differential favoring the dollar over the yen in the near term.