This report provides a comprehensive analysis of the USD/JPY currency pair, focusing on the economic variables that influence its exchange rate. The report begins by outlining key economic factors, including inflation rates, terms of trade, political stability, current account, government debt, and interest rates, and explains their impact on foreign exchange rates. The analysis then delves into the specific relationship between the US dollar and the Japanese yen, exploring how factors such as export and import rates, and the Bank of Japan's interventions affect the currency pair. The report includes a chart illustrating the fluctuations in USD/JPY rates and offers a forecast based on current market scenarios, considering the US-China trade war and tariff implications. The analysis suggests a potential decrease in the USD/JPY rate in the coming months, and also highlights the role of inflation. The report concludes with a reference list of books, journals, and online resources used in the analysis.