Assume that the current exchange rate for Japanese Yen and U$.$S$.$ Dollar is $140$ JPY per USD. Considering Interest Rate Parity $($IRP$),$ if interest rates are higher in the United States than in Japan, what should we expect what for the forward exchange rate?

IRP does not apply to this situation.

We should expect no change in the forward exchange rate.

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

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