Forex: USD/JPY topped at 83.96 ahead Sunday election in Japan

FXstreet.com (Barcelona) - The market saw one last rally of the USDJPY ahead of the Sunday election in Japan, with the upside being topped at 83.96 high followed by retracement back to 83.65. High expectations of what is to come keep investors on their toes in regard to the Yen. If LDP's Shinzo Abe becomes the new leader of government, financial markets may expect agressive fiscal and monetary intervention in order to wake Japan's economy up.

Earlier in the day, the Tankan survey in Japan for Q4 pointed to a rise from 6.4% to 6.8% (consensus of 5.0%) on Large All Industry Capex. Both Large Manufacturing and Non-Manufacturing indexes eased, from -3 to -12 and from 8 to 4, respectively.

"Beyond here (84.19) we look for the 200 week moving average at 85.05 and then the 86.83/87.13 area, the 23.6% retracement of the move down from the 2007 peak and the December 2008 low, to be reached", wrote Commerzbank analyst Axel Rudolph, pointing to 82.84/75 to contain moves lower.