On Monday, the pair briefly peaked at a seven-year high of 117.04 in a knee-jerk reaction to Japan's dismal third quarter growth data, before retreating to the 115 zone amid a sharp decline in Tokyo stocks.
The yen's recent decline against the greenback began when the Bank of Japan shocked global financial markets at the end of October by expanding its monetary easing program. The move was an attempt to recharge a fragile economic recovery and stoke inflation, which remains at the half way mark to the central bank's 2 percent target.
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Despite the pullback from recent highs in early Asian trading on Monday, analysts believe that the pair remains in an uptrend.
"We see higher levels for the dollar-yen. There's no reason for [the yen] to gain on any sustainable basis, but in the near term, we can see a pullback," Patrick Bennett, FX Strategist at CIBC, told CNBC's "Street Signs Asia" on Monday.
"The Bank of Japan is likely to re-affirm announced stimulus tomorrow though prospects of shelving the [second] VAT hike (tentatively scheduled for October 2015) may not be welcome. Overall, dollar-yen bias is higher on U.S.-Japan divergence," analysts at Mizuho Bank wrote in a note, referring to the central bank's 2-day policy meeting which commences on Tuesday.
So tell us, where do you think the currency pair will be trading by year-end?