CDJapan certainly does
not jack up CD prices. On the contrary, they charge the retail Yen price, and they remove the embeded sales tax if you're outside Japan, and that final price is converted straight from Yen to USD. Sometimes they charge even less than that.
Japanese CDs are simply more expensive on average to begin with, because their economy is so different. Even McDonalds food will cost 2-3 times more in Japan than it will in the United States.
If
anyone jacks up Japanese CD prices, it's YesAsia, so they can give you 'free' shipping, and Amazon.com USA, because they're batshit crazy if they think anyone will pay will pay $40 for
Kyoiku.