The dollar was up 0.1 percent at 115.61 yen, not far from the seven-year high of 116.11 yen struck on Tuesday. It briefly touched a low of 115.32 yen after government data showed that more Americans last week filed for jobless benefits than expected but still near a 14-year low.
An election in Japan is seen returning Abe to power with a bigger mandate, which analysts believe would allow him to implement a second round of reflationary policies and possibly delay a planned sales tax hike. That has spurred a rally in Japanese stocks and weighed on the yen.
A senior figure in Abe's ruling party told reporters it appeared the premier had decided to call an election. Abe is expected to make his decision depending on the strength of economic indicators, with third-quarter gross domestic product data due on Monday.
Britain's sterling dipped to a 14-month low against the dollar, with weaker housing data adding to pressure on the pound from a shift in the Bank of England's economic outlook a day earlier.
The pound was last off 0.2 percent at $1.5743 and is down 5 percent year to date against the dollar.