TOKYO (AFX-ASIA) - The dollar was firmer against the yen in midafternoon trade after comments by officials that the government is not planning a forced capital injection into the banking sector, dealers said. Finance Minister Masajuro Shiokawa said the government currently has no plan to inject capital into banks by force. State Minister for Economic and Fiscal Policy Heizo Takenaka said he does not think it is necessary to change regulations, allowing the injection of capital into the banks by force. A dealer at a local Japanese bank said the yen was reacting immediately to negative Japan-related leads, following its gains last week. "This week, it seems like the positive view on the outlook for Japan will be corrected," after these negative comments about a capital injection into banks, as well as the slow reaction by the government, the dealer said. "Sentiment on the yen has turned very bearish. It is possible that the yen will fall to the 135.00 yen level after overseas markets open later," the dealer said, adding that weakness in the yen is likely to accelerate sales of other yen-assets, such as securities and Japanese bonds. The dealer said that under these circumstances, the government is likely to draft more concrete deflation measures, adding that "the government will pressure the BoJ further to ease its monetary policy." The next policy board meeting, scheduled to be held next Thursday, will be a key point of focus for the forex market, the dealer said. "BoJ members may discuss whether to adopt inflation targeting at the next meeting in order to support the government's deflation measures," the dealer said, adding that the dollar/yen will move in the range of 133.00-136.00 for the next week. The euro was rangebound against major currencies as there were no fresh leads, dealers said. The dealer said the euro will continue its quiet trade for the time being, as long as investors focus on the yen's movement rather than the euro. "Investors are more concerned about the yen's movement, rather than that of the euro. If they turn to look at the euro market, it is possible that the euro will fall further," he said. He said the euro/dollar will move in the range of 0.8750-0.8600 and the euro/yen in the range of 115.00-117.00 for the next one week.