COZforex: The US dollar rise to 9 months high against the yen on Thursday as investors priced in the likelihood that Shinzo Abe, Japanese opposition leader and champion of looser monetary policies, will win Sunday's elections and become the country's next prime minister.

In US trading on Monday, USD/JPY was trading at 83.62, up 0.44%, up from a session low of 83.13 and off a high of 83.67. Coz forex senior derivatives trader Daniel • Moloney said, the pair was likely to find support at 82.50, Wednesday's low, and resistance at 83.67, the earlier high.

In November, the Bank of Japan made no changes to the country's JPY91 trillion asset purchasing plan; though a Shinzo Abe victory could change the monetary authority's policies.

Elsewhere, the US Commerce Department reported earlier that US retail sales increased by 0.3% in November from October, whose rates contracted by 0.3%. November's figures still missed market forecasts for a gain of 0.5%, which further stoked risk-off trading sentiments. The Department of Labour, reported earlier the number of people filing for initial jobless claims falls by 29,000 to 343,000 last week, beating predictions for a drop of 2,000. The previous week’s figure was revised up to 372,000 from 370,000.

The yen was down against the pound and down against the euro, with GBP/JPY up 0.20% and trading at 134.72 and EUR/JPY trading up 0.46% at 109.35.

Markets are awaiting the release of the Tankan Large Manufacturers Index out of Japan later. (COZ forex UK)


COZ USD/JPY charts:

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