Index predicts yen rise ahead

Contributors to the FX Week Currency Forecasts Index are predicting that the yen will strengthen 6% against the dollar and 4% against the euro over the next 12 months.

But it's not going to be a smooth ride, according to Trevor Williams, chief economist for Lloyds TSB Global Markets in London, this week's top one-month forecaster on the Index for all majors.

The bank is looking for the Japanese currency to weaken f