Yen strength following a clear election win for Japan's ruling coalition in weekend elections has defied expectations of further currency weakness and has left the yen once again drifting away from the key 100-mark versus the dollar.
The Japanese currency on Tuesday firmed to about 99.13 per dollar, its strongest level in almost a week and up more than 2 percent from a one-and-a-half month low hit earlier this month.
Analysts say the yen's reaction to Sunday's upper house election is partly explained by the currency already weakening last week in anticipation of Prime Minister Shinzo Abe's ruling coalition securing a decisive win that strengthens Abe's position to push through economic reform.
(Read More: Is it 'all systems go' after Abe's big election win?)
The other reason, they add, is that with the election over there is an element of uncertainty about how aggressive Abe will be with his economic program and that means traders are holding back from pushing the yen lower for now.