Exporters said they can remain profitable as long as the yen trades at 92.90 per dollar or weaker, a government survey showed.
The level is stronger than the ¥97.33 break-even point companies provided last year, according to a survey released Friday by the Cabinet Office.
A revival in global trade and emergency spending at home have been sustaining the economy's recovery from its deepest postwar recession. One of the biggest risks to the nation's rebound is a gain in the currency, which erodes the value of exporters' earnings, said Yoshiki Shinke, senior economist at Dai-ichi Life Research Institute in Tokyo.
"The government may have no choice but to roll out another stimulus" should the yen resume its advance, Shinke said before the report.
Japan's currency soared to a 14-year high in November, prompting Prime Minister Yukio Hatoyama to unveil a ¥7.2 trillion spending package and the Bank of Japan to introduce a new lending program.
The yen has retreated more than 5 percent since November, helping companies including Honda Motor Co. A stronger yen erodes the profits of Japanese exporters.
Honda has raised its full-year profit forecast because the yen hasn't strengthened as much against the dollar as it predicted. The carmaker said the yen may average 92 against the dollar for the year ending March 31, compared with an earlier forecast of ¥90.