NEW YORK (TheStreet) -- For all of the speculative trading surrounding Federal Reserve Chairman Ben Bernanke's statements these past few weeks, the markets on Thursday traded on fundamentals.Unemployment numbers fell, beating expectations and proving that the labor market recovery is sustainable. Similarly, the Philadelphia Fed report for July hit its highest levels in two years. With the stronger economy, equity markets reached record highs. The first chart below is of CurrencyShares Japanese Yen Trust ( FXY) over PowerShares DB US Dollar Index Bullish ( UUP). The dollar has shown strength as investors continue to price in a September start to an end of monetary easing. Japanese elections, however, have led the yen to strengthen recently. Japanese Prime Minister Shinzo Abe has taken a strong reflationary stance on monetary policy, which has weakened the yen and strengthened the Nikkei index. Upper house elections take place on Sunday, which -- if Abe can pull out a victory -- would resume the reflationary stance in Japan. Until that time, the yen and Japanese assets should remain muted.