Release Explanation: The Bank of Japan is releasing their monetary policy meeting minutes. They contain detailed records of what was said at the banks previous interest rate meeting. This can give valuable clues to traders as to what may be coming from the Bank of Japan in terms of future monetary policies.

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

• Exports have decreased dramatically and are expected to continue decreasing over the coming months.
• Employment and income have become scarce as companies cut labor and wages.
• Financial conditions remain tight.
• The members expect to see a recovery start in late 2009.
• The board is uncertain of the effect on policy at this time and needs to further monitor financial conditions.
• The Board has decided to expand special funds-supplying operations in order to facilitate corporate financing.

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 has formed a channel near 97.15.