Japanese Monetary Policy Meeting Minutes

Release Explanation: The Bank of Japan is releasing their monetary policy meeting minutes. They are a detailed record of the banks interest rate meeting. This can give valuable clues to traders as to what may be coming from the Bank of Japan.

Trade Desk Thoughts: The monetary policy meeting minutes from Japan revealed a number of key points:

• Japans money market had 'been nervous' while yields on treasury bills declined.
• The Bank of Japan members agree to monitor the recent rate cuts to see what effects come about.
• The members feel it is important to work on interest rates in the long term.
  Corporate bonds may have a limited effect.
• The members expect to see a recovery start in late 2009.
• Financial conditions in the country have become tighter.
• The board is uncertain of the effect on policy at this time and needs to further monitor financial conditions.

Forex Technical Reaction: The yen has not had much of a reaction to this release. After rising nearly 200 pips in the previous day’s trading, the pair is channeling about 30 pips above the neutral pivot point.

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