Another whipsaw session for the JPY this morning, with dollar-yen opening at Y116.48, below the Friday US high of Y116.82 seen after some promising US retail sales data. Early attention this morning was on the release of Japanese Q3 GDP data, which came in at a disappointing -0.4% q/q. Dollar-yen jumped after the data heading through the initial highs and then taking out the Friday session high. The pair briefly paused in the face of sellers at Y117.00 but managed to push marginally higher after that. It traded a high of Y117.06 but halted abruptly and then reversed direction. Dealers attributed the reversal to profit-taking which triggered a scramble to exit long positions. Dollar-yen pulled back to Y116.24 a few minutes after Japanese stocks opened lower and then extended the decline through Y116.00. Losses continued through the rest of the morning as the pair ran through through the US session lows before dollar-yen then came to rest at a Y115.45 low. It saw a mildrecovery in the afternoon and was last at Y115.76.
