^_^ is an emoticon expressing joy, it is nither homosexual nor sexist in any way shape or form. It is most used in anime circles, along with variations including but not limited to ^_^;;@_@>_<>_><_<0_00.0=^_^==^.^=0o0 etc...
i love you ^_^
you said penis ^_^;;
aaahh i have soo much homework @_@