The strengthening in the JPY in the last week or so, although relatively moderate so far, could be put down to the upcoming general election on August 30th. Many expect the long-serving LDP to finally be thrown out of office and the new government to be more amenable to a stronger JPY. At the very least we should start to see an increase in volatility as the election date nears. Dealers report that exporters have been particularly active in USD/JPY this week, as they tie their deals in at current exchange rates, not willing to bet on what might happen after Aug 30.