LONDON (AFX) - The dollar remained depressed in midday trade though talk of Bank of Japan intervention provided some support against the yen, dealers said. Dollar/yen slumped to a six-month low of 123.44 but recovered soon after on talk that the Bank of Japan was intervening to stem the yen's appreciation. In general though, the dollar continues to suffer at the hands of the markets. Euro/dollar hit a 15 month high of 0.9398 earlier in the session before slipping back somewhat on profit-taking. Kamal Sharma, currency strategist at Commerzbank, said the Wall Street backdrop isn't helping at all, as the Dow Jones index remained stuck below 10,000. Sharma reckons that there may be a bit more profit-taking as speculative long positions get unwound but wouldn't be surprised if euro/dollar starts surging towards its next resistance level around the 0.9440 mark. A breakthrough to 0.9600 isn't out the question either, he said. Meanwhile, Hans Redeker, global head of forex strategy at BNP Paribas, thinks a weekly closing price above 0.9335 opens potential to 0.9610. "Resistance at 0.9330 has proven less formidable than we expected, with currency pair continuing t rally, and moving to its highest level in over a year," he said. The dollar rout is likely to continue, said Michael Klawitter, currency strategist at WestLB, who is set to revise his dollar forecast further to the downside on the back of the risks associated with the current account deficit. "Even a better than expected initial jobless claim number today will not provide much support. Elsewhere, sterling was still languishing, raising concerns that the Bank of England may have under-estimated sterling's depreciation. Commerzbank's Sharma thinks that euro/sterling could rise to around the 0.6550 mark on the continued debate surrounding UK entry into the euro. However, further upside is likely to be capped by a broad-based desire to prevent the UK having much of a competitive advantage if it enters the euro zone.