USD/JPY Supported as US Stocks Close Lower on Oil and Yield Spike

US equity indices closed lower with the S&P 500 and Dow leading declines of near 0.50%, as selling accelerated into the afternoon session. The catalysts were twofold: rising crude oil prices, which revived inflation concerns, and higher Treasury yields, which tightened financial conditions and pressured rate-sensitive sectors. For FX markets, the risk-off tone typically supports traditional safe havens, with USD/JPY and USD/CHF often catching bids on defensive flows, while commodity-linked currencies such as AUD/USD and NZD/USD face headwinds when equity breadth deteriorates. Firmer oil prices remain a relative positive for CAD, capping USD/CAD upside. The simultaneous rise in yields and drop in stocks suggests markets are repricing the inflation path rather than the growth path, a combination that historically favors the dollar against low-yielders on carry but limits broad USD gains against the euro. Traders should monitor whether equity weakness extends into follow-through selling, as a deeper correction would likely amplify yen demand and compress AUD/JPY and other risk-sensitive crosses in the near term.