TOKYO (AFX-ASIA) - The dollar was rangebound in midafternoon trading due to uncertainty over the trend on Wall Street and in international capital flow, dealers said. "Ultimately, the performance on Wall Street will determine how far the dollar will fall against other currencies, as overseas investors appear to be continuing to adjust their overweight positions on US shares," said Takashi Fujieda, foreign exchange dealer at Mizuho Asset Trust Bank. "Encouraging a shift of fund allocation to Japan is emerging (on the) view that Japan is gradually stepping away from a deflationary downtrend." The Ministry of Public Management, Home Affairs, Posts and Telecommunications earlier announced that nationwide consumer prices in March rose 0.2 pct month-on-month after falling 0.5 pct in February, while the unemployment rate declined to 5.2 pct in March from 5.3 pct in the previous month. While concerns over capital outflow from the US are capping the dollar's upside, fears over possible action by the Japanese monetary authority is supporting the unit's downside, dealers said. Finance Minister Masajuro Shiokawa said this morning the ministry is closely watching foreign exchange movements with close interest, and is studying the factors behind the recent sharp rise in the yen. "But, unless the unwinding of overweight positions on US assets comes to an end, the dollar is not likely to see a major turnaround," Mizuho Asset's Fujieda said. "Before this happens, the dollar may fall to around the recent low of 126 yen level." The euro also held to a narrow trading range due to lack of follow-through buying, but the unit is expected to maintain its upward momentum until the capital outflow from the US ends, dealers said. "Since the market has not regained full confidence in the euro, the unit is most unlikely to reclaim parity (with the dollar), although it may reach the 0.92 usd level," Fujieda said.