If the prices in the United States rise in relation to the prices in Japan then what we would expect is that the dollar will depreciate and the yen will appreciate.
What happens to currency when prices change?
When the price of goods in a country decrease, then it means that the country's currency is getting weaker relative to those of other nations because it can only buy lower goods in other nations.
This is why a decrease in prices in the U.S. relative to prices in Japan would point to the U.S. dollar depreciating in relation to the Japanese Yen.
In conclusion, the U.S. dollar would depreciate.
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