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According to analysis by JPMorgan Chase & Co, the country may have to spend a record sum to curb the gains made by its currency, reports Bloomberg.
Tohru Sasaki, head of Japan rates and forex research at the firm, commented: "Even if the action can stem the currency's gains temporarily, the yen will eventually appreciate."
The yen is forecast to climb to 72 yen against the dollar by September next year, the expert added.
On October 31st 2011, Japan took steps to weaken the yen, which led it to fall 4.3 per cent against the greenback.
It was the third time this year that the government intervened to prevent the currency from making further gains.
Thomas Harr, head of Asian currency strategy at Standard Chartered in Singapore, asserted that there is likely to be a "short-term bounce" in the dollar versus the yen.
Posted by Clive Arneil
