"V" is for "Kawaii"!
July 19, 2007
Hey, how come Japanese folks always throw up the two-fingered “V” sign when you’re taking photos? Turns out it’s because of an American figure skater’s activism. At least in part. (Don’t worry, it’s still insulting elsewhere.)

You can see the moment on video (amongst the cheese)
http://www.youtube.com/watch?v=m8ZNDfgBmQk
And, it tends to be misinterpreted by the US media. No, it's not peace that they are saying ... it's victory.