USDJPY has stuck to a 10 pip range.......>

DOLLAR-YEN: USDJPY has stuck to a 10 pip range with Japan away on holiday. The

pair trades at 106.50, with some $3.09bln worth of 106.00 expiries & $1.15bln

worth of of 107.00 expiries set to roll off at Wednesday's 10AM NY cut.

- FOMC remains front and centre heading in to the EU/US Wednesday session, with

focus set to fall on the dot-plot as almost all of those surveyed viewing a 25bp

hike as a done deal.

- Initial support lies at 106.27, with any break of the figure set to see focus

fall on the YtD low of 105.22. To the upside, initial resistance lies at 106.75,

the high from MAr 14, with the Bollinger band top noted at 107.51.

- USDJPY encountered some selling pressure in early EU hours on Tuesday after

BoJ's Deputy Gov. Amamiya noted that he doesn't rule out adjusting rates before

Japan hits 2% inflation, with USDJPY bottoming around 106.10.

- USDJPY Risk reversals continue to operate off of the Feb lows, but aren't

quite at the March highs, with the 1 -week, 1-month & 3-month RR's continuing to

operate in negative territory.