Japanese Monetary Policy Meeting Minutes- Risk To The Downside Still Seen

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: All of the members of the Bank of Japan have agreed that the economic uncertainty is intensifying and that providing liquidity will not solve all the problems. Although the bank does feel that they should enhance operations to free up liquidity while the economic recovery will likely be delayed. The Bank is concerned that there is no sign of U.S. home prices finding a bottom while the downside risks associated with the European and U.S. economies is mounting as global capital is being depleted. The bank is also worried about the risks of keeping the interest rate, which now stands at 0.30 percent after it cut 20 basis points at its last meeting, this low for too long.

Forex Technical Reaction: The yen is currently trading below the neutral LFB pivot point as well as the 20 day SMA. Slightly above those two areas is the LFB R1 level as well.

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