Howto refer dynamically to an XML file in XQuery in Saxon
If you look for a way to bind the input (the context item) of the query using Java, I recommend using Saxon's S9API (the most intuitive API for XSLT, XPath and XQuery processing in Java).
Here is how to instantiate Saxon, compile the query, parse the input and evaluate the query with the input document bound as its context item:
// the Saxon processor object
Processor saxon = new Processor(false);
// compile the query
XQueryCompiler compiler = saxon.newXQueryCompiler();
XQueryExecutable exec = compiler.compile(new File("yours.xqy"));
// parse the string as a document node
DocumentBuilder builder = saxon.newDocumentBuilder();
String input = "<xml>...</xml>";
Source src = new StreamSource(new StringReader(input));
XdmNode doc = builder.build(src);
// instantiate the query, bind the input and evaluate
XQueryEvaluator query = exec.load();
query.setContextItem(doc);
XdmValue result = query.evaluate();
Note that if the Java code is generating the XML document, I strongly advice you to use S9API to build the tree directly in memory, instead of generating the XML document as a string, then parse it. If possible.