The yen is likely to cede further ground in coming weeks as the political tension ratchets up ahead of national elections in the middle of next month. Buy the dollar at ¥81.26.

The Far Eastern currency is under attack following prime minister Yoshihiko Noda's dissolution of the House of Representatives last week (16 Nov) and call for a snap election. The leader's ruling Democratic Party of Japan (DPJ)is expected to cede power in the run-off (16 Dec) to Shinzo Abe's Liberal Democratic Party which is calling for unlimited bond purchases from the Bank of Japan and a 3% inflation target.

The Bank is due to hold its next monetary policy meeting as Shares goes to press (20 Nov). Although political pressure could preclude the institution from expanding its ¥91 trillion asset buying programme on this occasion, more action is expected as the economy continues to weaken. Preliminary third-quarter GDP numbers show a 0.9% sequential plunge in output (11 Nov), the steepest drop since March 2011's tsunami.

Shares says: Buy the dollar at ¥81.26.