The yen was trading modestly firmer on Monday after the Democratic Party of Japan (DPJ) ousted the ruling Liberal Democratic Party in a landslide, so putting an end to election uncertainty.
Investors are now waiting to see exactly what policies the new government will follow and how it will differ from the old. The DPJ has stated it will have a hands-off approach on forex policy and is not against a strong yen.
The yen was quoted at 93.26 per dollar, compared to 93.56 in New York on Friday, and at 133.46 per euro from 133.80. The U.S. dollar was a shade easier on a basket of currencies.
The reaction has been very muted as the differences between the party on policy are more of nuance than of substance, said Stephen Roberts, an economist at Nomura in Sydney.
The DPJ may favor the consumer more, which ultimately could be favorable for the economy, but that's a long-run thing.
Elsewhere, the euro was steady on the dollar at $1.4305, from $1.4300 late on Friday, and still capped by the month's $1.4445 high with support around $1.4220.
Investors were cautious ahead of a busy week for data and central bank meetings. The U.S. payrolls report on Friday is expected to show a drop of around 225,000, which would continue the improving trend in the labor market.
Auto sales figures on Tuesday should show a boost from the cash for clunkers program, while the ISM report is expected to show a move into growth at 50.5.
Central banks meeting this week include the Reserve Bank of Australia, the ECB and Sweden, while the Group of 20 meet in London on September 4 to 5.
(Reporting by Wayne Cole; Editing by James Thornhill)