USD/JPY and FTSE 100 present key trading opportunities amid market shifts

USD/JPY maintains bullish momentum at 159.35, up 0.5% as traders position for a potential break above the 160 resistance level. The pair's strength reflects ongoing divergence between Fed and BOJ policies, with US yields remaining elevated while Japan maintains negative rates. Technical indicators suggest continued upward pressure with the 14-day RSI at 67 and price action above all major moving averages. Meanwhile, the FTSE 100 shows resilience at 8,245 points, supported by energy sector gains and sterling weakness. The index faces resistance at 8,300 while support holds at 8,200. For USD/JPY, a decisive break above 160 could trigger acceleration toward 162.50, though intervention risks increase at these levels. FTSE traders should monitor UK inflation data due this week, which could impact both the index and GBP pairs. Risk management remains crucial given elevated volatility across both instruments.