TOKYO (AFX-ASIA) - The dollar turned easier against the yen in midafternoon trading on a lack of follow-through buying, after having risen earlier in the day on concerns over the soundness of Japan's financial system, dealers said. Earlier, the dollar reached a high of 121.38 yen, as the steep fall in the share price of Asahi Bank sparked serious fears over the bank's financial condition as well as over the broader banking sector, they said. Asahi Bank president Yukio Yanase said at an emergency press conference that the sharp declines in the bank's share price appeared to be due to selling of large lots by foreign investors, followed by further offloading by speculative investors. "Considering the bank's PER (price-earnings ratio) of 7.56 times and PBR (price-to-book ratio) of 0.28 times, our shares are oversold to an abnormal extent," he said. Hachijuni Bank foreign exchange dealer Naoya Kozu said currency investors, in general, are more anxious about the situation of Japanese banks than are equity market investors, but "are still motivated to test the strength of the Japanese authority's commitment to prevent a sharp appreciation of the yen." Finance Ministry senior deputy director-general Zenbei Mizoguchi said earlier that the ministry is ready to take appropriate action in the market against any signs of excessive strength of the yen against the dollar. "If the mid-120 yen level is broken, the next support for the dollar will be around the 119.70 yen level, although there is a chance that by the time the dollar reaches such a level, the authority may take some action," Hachijuni Bank's Kozu said. Investors refrained from accumulating new positions ahead of today's policy meeting of the European Central Bank, which is widely expected to decide on a 25-basis-point rate cut, dealers said. But Kozu noted that "a 25-basis-point rate cut alone will not be able to revive the market's confidence in the ECB's policy management." "Therefore, the euro will not be able to consolidate the 0.90 usd level just on a 25-basis-point rate cut alone."