TOKYO (AFX-ASIA) - The dollar was modestly lower against the yen in midafternoon trade, pressured by dollar-selling by Japanese exporters, dealers said. They said that the dollar's weakening has eased during afternoon trade amid expectation Japan's sovereign rating will soon be downgraded by Moody's. Some market participants are expecting Moody's will announce the downgrade today, dealers said. "As Moody's said that it will announce the downgrade within this month, market participants are expecting the announcement today," UFJ Bank dealing section vice president Shigetake Nakayama said. Nakayama said the impact of any downgrade should be modest, possibly a 0.20-0.30 yen fall against the dollar if Moody's downgrades one notch, which is what he expects will happen. "I expect the impact from a one-notch downgrade would be limited, as the market has already factored this in," Nakayama said. Nakayama said that even if Moody's downgrades two notches or assigns a negative outlook to Japan's sovereign rating, the Japanese currency will be well-supported at around the 125.00 level, owing to dollar sales by Japanese exporters. The euro is rangebound against the major currencies, dealers said. Nakayama said he expects the euro to continue to strengthen against the dollar. "However, investors currently hold euro-long position. If some dollar-positive or euro-negative news come out, it is possible that the euro will enter a correction phase," Nakayama added.