Tokyo and Osaka have become the most expensive cities for expatriates, according to a cost of living survey.

The Japanese capital dislodged Moscow from the top spot of Mercer LLC's list of most expensive cities for foreigners while Osaka moved from 11th spot to number two. The Russian capital, last year's most expensive city for expats, fell to third spot.

Mercer cited the increased value of the yen against the U.S. dollar as the reason for Tokyo and Osaka topping the list.

Also in the list's top five are Geneva (4th) and Hong Kong (5th).

The list is based on the cost of living of 143 cities with New York City as the benchmark. Mercer surveyed the prices of more than 200 items, including housing, food, transportation and entertainment.