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:

• Some members are calling the current economic conditions an 'emergency'.
• Concern for financial situations to deteriorate sharply and the need for drastic measure may be needed.
• An adverse feedback loop is being seen globally and between the Japanese finance and the economy.
• Some members contend that the Japanese economy continue to contract well into the 2009 fiscal year.
• Members are in agreement that economic conditions will be getting worse in the near term.

Forex Technical Reaction: The yen weakened slightly off the back of this release, bouncing 30 pips higher off of the neutral pivot point of 89.00, the pair is currently trading at 89.35.

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