The Japanese yen has a managed floating exchange rate against the U.S. dollar that is influenced by interest rates. Historically, the yen was fixed to the dollar during WWII but became floating in the 1970s. In the mid-1980s, the Plaza Accord recognized the yen was undervalued and it appreciated to around 80 yen per dollar by 1995. Currently, the exchange rate is around 82 yen per dollar and forecasting models like PPP and IFE/IRP are used to predict future exchange rates.