TOKYO (AFX-ASIA) - The yen was higher against the dollar in midafternoon trade due to exporter demand for the currency as well as strength in the local stockmarket, dealers said. They said that overnight news Standard and Poor's has downgraded Japan's credit rating had already been factored into the market, adding that the move had little impact on the yen. Overnight, S&P said it has cut Japan's long-term local and foreign currency sovereign credit ratings to AA- from AA and maintained its negative outlook due to delays in structural reforms to the economy. Takayuki Togawa, a dealer at UFJ Bank said any similar move by Moody's would have a limited impact on the forex market, if, as expected, bonds remain fairly steady. "Today, there was only a limited impact to the forex market from S&P downgrade, as the bond market was pretty stable today. As long as the JGB market is stable, I think the impact from any Moody's downgrade will also be limited," he said. In February, Moody's said it would review for a possible downgrade its "Aa3" rating on yen-dominated domestic securities issued or guaranteed by the government. "But, if the JGB market reacts negatively to the downgrade, it is possible that heavy selling of Japan assets will emerge," he said. Togawa said, however, the dollar/yen will move in the tight range of 130.50-133.00 for the next week, as investors will continue to take a wait-and-see stance ahead of the outcome of a Middle East peace mission by US Secretary of State Colin Powell, as well as US Federal Reserve chairman Alan Greenspan's testimony before congress. Togawa said he does not expect any surprise announcements in Greenspan's testimony, which is scheduled for Wednesday. "I think that his testimony will become something which will not disturb the market actively. But, I expect that Greenspan will make positive comments about the US economic outlook. I think that the testimony will be positive for the dollar," he said. The euro was rangebound in afternoon trade with no new leads, dealers said. Togawa said that euro/dollar will move in the range of 0.8750-0.8850 for the next week, adding that there is strong resistance at 0.8850.