TOKYO (AFX-ASIA) - Major currencies were rangebound in midmorning ahead of the FOMC decision on interest rates on Wednesday as well as the next policy board meeting by the Bank of Japan, dealers said.
Standard &+ Poor's MMS managing analyst Hideki Naito said currencies were tightly held ahead of this week's policy meetings from the Federal Reserve, which is expected to cut interest rates 25-50 points, and the BoJ, which is expected to maintain its monetary stance.

"Maybe the market expects 50 basis points. Over the last five times, (the Fed) lowered by 50 points. If its 25, the move will be bearish ... for the stockmarket," Naito said.
"The BoJ itself does not have any intention to extend its easing, although there is some market expectation ahead of the G22 meeting (next weekend) of pressure on the bank," he said.
The yen looks set to fall further on weak economic fundamentals.
"Of course the yen should be under pressure; we expect further weakeness in the yen," he said.
However, "above the 125 yen level some (exporters) will continue to sell because we are gradually heading towards the summer vacation," he said, noting also that with the trade surplus declining, the impact of exporter hedging is reduced.
"Maybe we can expect the dollar to hit 125 yen in the near-term but relatively larger profit-taking should appear. Above 125 yen, at every 50 points we see barriers," he said.
The euro was also rangebound ahead of this week's policy meetings. "Fundamentally, it's still going to the downside but fear of intervention has prevented further falls," Naito said.