• Cautious tone persisting across markets as traders remain wary ahead of the FOMC meeting, which is likely to spur volatility. 
   
• Yen gains amid cautious trades and risk aversion, keeps EUR/JPY subdued on the day.
   
• Data released earlier showed Japan All Industry Activity Index in February at -1.2% m/m above forecasts at -1.3%.
   
• EUR/JPY largely rangebound on the day, upside is seen capped at 61.8% Fib at 125.73.
   
• The pair also finds strong trendline resistance at 126.40 levels, breaks above needed for further bullishness.
   
• The Bank of Japan will decide on its monetary policy on Thursday and is likely expected to deliver decisive steps.
   
• Pair is holding above 5-DMA (125.12) which is strong support on the downside. Breaks below could see next support at 125 (50% Fib of 128.221 to 121.711 fall).
   
• Techs support upside in the pair, breaks above 126.40 will be signal for long.