USD/JPY Rises as Yen Slides While Oil Gains Pressure Risk Sentiment

USD/JPY has moved higher as the Japanese yen weakened across the board during Monday's session, coinciding with US equity futures erasing overnight gains and crude oil climbing to a one-week high. The yen's slide reflects persistent yield differentials between the Bank of Japan and the Federal Reserve, with traders reassessing near-term monetary policy expectations from both central banks. Rising oil prices, which increase Japan's import costs given its status as a major energy importer, have added further downside pressure on the yen by worsening the nation's trade balance outlook. The reversal in US futures from overnight gains to flat-to-negative territory signals mixed risk appetite, creating a complex environment for carry trade positioning. Near-term resistance for USD/JPY is situated at recent weekly highs, while support likely holds at the session's overnight lows. Traders should closely watch upcoming BOJ policy signals and US economic data releases for directional cues. The correlation between rising crude prices and yen weakness remains a key theme, with further oil gains potentially amplifying USD/JPY upside.