From 1985 to 1988 the U.S.dollar depreciated over 50 percent against the yen, yet Japanese export prices to Americans did not come down the full extent of the dollar depreciation.This is best explained by

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Partial currency pass-through means that not all of the exchange rate changes are passed on to the prices of imported goods. This phenomenon is likely the reason why Japanese export prices did not come down the full extent of the dollar depreciation. The J-curve effect refers to the short-term increase in trade balance that can occur after a currency depreciation, followed by a long-term improvement in the trade balance. However, this is not relevant to the given scenario.