"Going forward it is our expectation that relatively higher yields and in particular improving risk appetite will fuel bigger capital outflows and reinforce the downward pressure on the yen," he added.
(Read more: HSBC strategist: Am I the last person in the world underweight Japan?)
Meanwhile, Nizim Idris, head of strategy, fixed income and currencies, at Macquarie bank also told CNBC on Thursday he also saw the yen resuming its weakening trend over next year.
However, he added that the Bank of Japan many need to increase its easing program to keep it on a downward course. He forecasts dollar-yen at 110 by the end of 2014.
"Right now I am still not confident, although the direction of travel in the dollar-yen is precisely where the BOJ wants it to go, so therefore they are happy to sit back and say we are hitting that 2 percent over two years, once it [dollar-yen] moves in the wrong direction I think these guys will have to do more," he added.
(Watch now: Abenomics: A year in review)
Japan is due to report consumer price index data for November on Friday, December 27th. According to a Reuters poll of 28 economists, inflation is seen reaching a new five-year high of 1.1 percent on year in November. Inflation stood at a five-year high of 0.9 percent in October.
— By CNBC's Katie Holliday: Follow her on Twitter