TOKYO (AFX-ASIA) - The dollar was rangebound in late morning trade, with investors cautious ahead of further developments in the Middle East and seeking confirmation on recent talk related to fiscal new-year capital flows in Japan, dealers said. "It fully depends on the Middle East," said Hiromi Ookawara foreign exchange analyst at MCM. "The resolution should be a full retracement of Israeli troops. But there are not enough developments to trade." Ookawara added that the market is also waiting to see data on capital flows for the start of April to help back up rumours that Japanese investors have not yet sent funds overseas to the extent previously anticipated by speculators. "The market's wondering what will be the truth of the flow changes as at the moment it's just a rumour, so market data is needed," he said. The market found little of interest in other fundamental factors, while technical barriers in the dollar/yen are stemming further sharp losses or gains. "The Nihon Keizai (newspaper) said banks have 1.9 trln yen in additional debt losses," Ookawara noted. "In the long-term it should be a good sign but the market's not moving on this. The Nikkei's a little lower but it should be some profit-taking rather than any disappointment (over the bad loan losses)," he said. "The market's a little bit dollar-short, so there is some support. We are in the ... core range of 131-132 yen," he said. "The bottom-side is a little bit difficult after the good rebound yesterday but on the topside there is some selling interest and stop-loss (barriers)," he said, noting that exporters may be among those interested in selling dollars. "The euro risk is on the downside because of euro-long positions built up," Ookawara said, noting the currency's failure to hold the 88 cent level.