Crude oil technicals: Buyers test key resistance near $93.50European major indices close mixed on the dayCopper reaches a new record high on the LMEKickstart the North American FX session. The USDJPY is the big mover. The EUR and GBP are down modestlyinvestingLive European session wrap: Oil climbs, yen surges amid US holidayThe US dollar moved mostly lower in holiday-thinned trading, led by a sharp decline against the Japanese yen. US markets were closed for the Labor Day holiday, but that did not stop USDJPY from extending its recent move to the downside.The pair fell 1.22% to 154.33 after reaching a low of 154.07—the lowest level in about six months. The yen has now strengthened by roughly 3.4% over the last five trading days.The catalyst continues to be the changing outlook for Bank of Japan policy. Takuji Aida, an economic adviser to Japanese Prime Minister Sanae Takaichi—and someone previously viewed as opposing tighter policy—said he expects the BOJ to raise rates at its September meeting. Markets are now close to fully pricing in a 25-basis-point increase to 1.25%.That is important because USDJPY has been supported for years by the wide interest-rate differential between the United States and Japan. If the BOJ raises rates while the Federal Reserve remains on hold, that spread begins to narrow. That reduces the attractiveness of borrowing yen to purchase higher-yielding assets—the so-called yen carry trade.There was also continued speculation about possible Japanese intervention during thin holiday trading. However, the more fundamental story remains the rising probability of a BOJ rate increase, combined with the possibility that the Fed stays on hold following Governor Christopher Waller’s more dovish comments last week.The USD was lower against all the major currencies except the New Zealand dollar, where it gained a modest 0.09%.The closing snapshot shows:EURUSD rose 0.08% to 1.1622USDJPY fell 1.22% to 154.33GBPUSD rose 0.12% to 1.3537USDCHF fell 0.02% to 0.8093USDCAD fell 0.15% to 1.3816AUDUSD rose 0.19% to 0.7216NZDUSD fell 0.09% to 0.5875Oil rises as Middle East tensions remain elevatedCrude oil futures rose $1.22, or 1.33%, to $92.70. Renewed tensions around the Strait of Hormuz increased concerns about energy supplies and shipping disruptions.Iran reportedly fired ballistic missiles toward two US Navy warships, while the United States responded by striking three Iranian tankers. With a significant share of the world’s oil moving through the Strait of Hormuz, any escalation tends to add a geopolitical risk premium to crude prices.Higher energy prices also have a broader market impact. A sustained rise in oil increases inflation risks and can make it more difficult for central banks to ease monetary policy.Other markets showed:Gold fell $21.12, or 0.48%, to $4,406.78Silver fell $0.04, or 0.06%, to $66.16Bitcoin fell $1,178, or 1.47%, to $79,161European stocks end mixed in quiet tradingEuropean shares finished mixed, with trading volumes reduced by the US holiday. Higher oil prices supported energy shares, but also increased concerns about inflation and the future path of European interest rates.Better European economic data provided some support. Eurozone investor confidence rose to a four-year high, while GDP growth was stronger than expected. However, the stronger data and higher oil prices also reinforced expectations that the European Central Bank may need to tighten policy further.The major indices closed:Germany’s DAX: -0.15% at 26,006.54France’s CAC 40: +0.33% at 8,306.16U.K.’s FTSE 100: -0.08% at 10,822.14Spain’s Ibex: -0.14% at 20,021.80Italy’s FTSE MIB: +0.25% at 52,229.56Europe’s STOXX 600: -0.02% at 639.72European yields move sharply higherEuropean bond yields moved higher as traders factored in stronger growth data, elevated oil prices and the potential for additional central-bank tightening.The changes in benchmark 10-year yields were:Germany: 3.386%, up 4.7 basis pointsFrance: 4.251%, up 5.6 basis pointsU.K.: 5.178%, up 4.4 basis pointsSpain: 3.826%, up 5.2 basis pointsItaly: 4.205%, up 5.3 basis pointsFor traders, the lesson from today’s market is that changing interest-rate expectations remain a major driver of currency flows. USDJPY is the clearest example. Intervention concerns may accelerate the move, but the more lasting influence will come from whether the Bank of Japan follows through with a rate hike—and whether the Federal Reserve remains on hold. This article was written by Greg Michalowski at investinglive.com.