Assume that the current exchange rate for Japanese Yen and U$.$S$.$ Dollar is $140$ JPY per USD. According to the International Fisher Effect $($IFE$),$ if interest rates are higher in the United States than in Japan, what should we expect what for that exchange rate?

IFE does not apply to this situation.

We would expect the exchange rate to move above $140$ JPY per USD.

We would expect the exchange rate to move below $140$ JPY per USD.

We should expect no change in the exchange rate.