The USD/JPY may trade in a 82.00-82.80 range with no strong direction ahead of Wednesday's FOMC meeting, says Kengo Suzuki, forex strategist at Mizuho Securities. While expectations of further Fed easing is a USD-weakening factor, Japan's upcoming general election that could see monetary dove Shinzo Abe become prime minister, and the BOJ policy board meeting next week are JPY-weakening factors, supporting the pair, he says. "The pair may be in a tight range for the time being," he says. The EUR/USD is tipped in a 1.2880-1.2980 range and could see some short-covering after it's recent falls, he says. "But it could become heavy as it approaches 1.3000," he says, as the surprise weekend announcement that Italian Prime Minister Mario Monti plans to resign early creates political uncertainty. The USD/JPY is at 82.35 and the EUR/USD is at 1.2940.
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