If the “taper”, i.e., the tapering of the Federal Reserve’s Quantitative Easing program, occurs soon, it has positive implications for the USDJPY. This is because Japan is the probably the only country out there that is using quantitative easing with the express goal of lowering its currency, and it is doing so on a scale that much larger than any other country. Coupled with those two factors, the belief of traders that Japan will be successful in driving down the yen, is further driving down the yen.
If the taper does not occur soon, however, it will mean that Hong Kong will come under greater pressure to release its peg to the U.S. dollar. While inflation is slowly rising here, it is rampant in Hong Kong. Eventually, Hong Kong will need to break this tie. But that time will come sooner rather than later if the US continues to devalue its currency via Quantitative Easing.