The yen's strength since early August should be temporary, says Capital Economics, which expects the Bank of Japan to announce another "substantial relaxation" of its policy in the coming months. With Japan reporting a weaker-than-expected GDP overnight and inflation still tame, CapEcon sees the BoJ doing more to keep the economic spark alive. That, paired with a Fed that's likely moving in the opposite direction in September, will lead USD/JPY to 105 by year-end and 110 by the end of 2014, firm forecasts. Dollar last at 96.53, up 0.3%.