If over the next year the inflation rate in the euro area is higher than the inflation rate in Japan, then the euro should depreciate relative to the Japanese yen.

Inflation Rate

A rise in the cost percentage of goods and services in an economy during a certain period.

Depreciate

The gradual reduction in the economic value of tangible fixed assets due to wear and tear over time.

Euro

The Euro is the official currency of the Eurozone, used by 19 of the 27 European Union countries.