If the Japanese Government boosts the demand for their exports, they will seek to try to weaken the Japanese yen in relation to the US dollar.When that happens, the USD/JPY will rise in its price. Traders wishing to benefit from this scenario should buy the USD/JPY (Ask) in anticipation of the increase in US dollar.
Similarly, when the level of Foreign Direct Investment (FDI) increases in Japan, this will help push up the value of the yen in relation to the US dollar. If that is the case, traders should sell (Bid) the USD/JPY hoping to profit from the appreciation in the yen.
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