Group 1 - The Japanese yen is expected to weaken further as hedge funds restart short positions ahead of the upcoming key election, with Prime Minister Kishi emphasizing the benefits of a weak currency [1] - The options market reflects a significant shift in sentiment, with demand for call options on USD/JPY increasing, leading to a decrease in the premium for downside risk [1] - Following the recent comments from Kishi about the advantages of a weaker yen for exporters, market interest in buying USD/JPY has been reignited [5] Group 2 - The yen has been steadily declining since Kishi won the leadership of the Liberal Democratic Party in October last year, recently hitting an 18-month low against the dollar [3] - Traders are increasingly returning to carry trades and high-yield strategies, anticipating a rise in USD/JPY, especially if Kishi's party wins decisively [2] - Actual fund investors have adopted a more cautious stance amid recent volatility, opting for protective options rather than committing to a clear direction for USD/JPY [5]