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Question 13.2: If the level of output in Japan rises, but other fundamental...

If the level of output in Japan rises, but other fundamental factors, including money supply, remain constant, there will be a decrease of the average level of prices in Japan. As a consequence, the Japanese yen will appreciate.

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Also future macroeconomic data matter, in that they determine market expectations. Therefore, expectations on future exchange rate are directly related to the level of the current exchange rate.
If the market expects the dollar price of the yen to become higher in the future than it is today, the dollar price of the yen will tend to be high today. But if the market expects the dollar price of the yen to be lower in the future than it is today, the dollar price of the yen will tend to be low today.

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