LONDON (AFX) - The yen firmed against the dollar in midday London trade, rebounding from earlier lows on a technical correction and on a lack of fresh data from the US today, dealers said. "The yen has bounced back, and the way looks clear for it to go quite a bit higher," 4Cast currency strategist Paul Bednarczyk said. "At the moment, 125 usd to 130 usd seems to be the level where most people think it should be," he said. Royal Bank of Scotland's Neil Parker noted that the yen suffered in early trade from weak Japanese industrial output figures for June which outweighed the positive result of the ruling Liberal Democratic Party in Japan's upper house elections at the weekend. He predicted the yen will fall to 123 usd again before firming on the view that Japanese Prime Minister Junichiro Koizumi has won a mandate for proceeding with his economic reforms. Dealers said today's lack of US data helped the yen regain ground. Elsewhere, the euro too reversed earlier losses despite expectations that the European Central Bank will keep rates on hold at Thursday's meeting of its governing council. In the UK, sterling was weaker following Friday's release of poor preliminary second quarter GDP figures. Otherwise, dealers said there is no significant data from the US today but that the focus will be on tomorrow's US consumer confidence figures for July. In the UK, strong consumer credit figures for June lifted sterling off earlier lows, even if they appeared to rule out any prospect of a rate cut by the Bank of England's monetary policy committee on Thursday at the conclusion of its two-day monthly meeting.