• USD/JPY remains subdued in early Asian session as markets resort to profit taking at highs.
   
• The major broke above strong resistance at 109.90 and took out 110.40 to hit highs of 111.88.
   
• Markets cautious as we head towards major risk events in both the BoJ and FOMC, some profit taking seen.
   
• No change is expected from the FOMC. The Fed’s assessment on the economy may offer some insight into its rates outlook.
   
• The BoJ is expected to deliver more easing as the inflation outlook has become less favourable. A failure to deliver easing may drive JPY strength.
   
• USD/JPY is currently trading around 111.15 levels, finds strong support at 111.04 (Feb 24th lows and session lows till now).
   
• Technicals for the day are biased higher, but some weakness likely on intraday charts.
   
• Pair finds next resistance above 112 handle at 112.66 (cloud base) and then at 113 levels.
   
• CFTC positions released Friday April 22nd showed that aggregate USD position has fallen into bearish territory for the first time since May 2014.