TOKYO (AFX-ASIA) - The dollar was top-heavy against the yen in midafternoon trading due to a lack of follow-through buying, with the decision by the Bank of Japan to leave its policy guidelines unchanged having little impact on market activity, dealers said. BNP Paribas foreign exchange general manager Takashi Nakata said regional players are waiting for the opening of overseas markets for fresh trading leads. "I still have some doubts about the sustained recovery of the dollar against the yen, as it largely depends on how far the Japanese currency falls against the euro," he said. "But if the euro can break through the major psychologically and technically important 119-120 yen level, then the dollar may be able to gain to 126-127 yen level." The dollar's advance is also capped by concerns over terrorism, the volatile US markets and ahead of the committee hearings on foreign exchange at the US lower house, dealers said. The euro remained firm due to the continued shift of funds from the US capital markets by European investors, dealers said. "Given the continued volatile US markets, it seems to be a matter of time before the euro rallies through the 95-cent level," Nakata said.