TOKYO (AFX-ASIA) - The euro firmed in midmorning, benefiting from concerns over the trend in the dollar and the yen, but with a large level of long positions and the failure to break 95 cents capping the upside, dealers said. The yen was stable at low levels against the dollar, continuing to be undermined by disappointment over recent moves in domestic equities, with stocks again lower today despite the rise on Wall Street overnight, they added. Hidehiko Inamura, forex vice president at Citibank, said many Japanese corporations missed the opportunity to buy the euro at lower levels, due to the currency's rapid rise, but are nervous of buying at current levels. "Maybe some investors want to buy euro ... but they think the euro/dollar's overheated," Inamura said, noting "good selling demand" at the 95 cent level. "Even European investors carry very huge euro-long positions," he said. The yen remained weak on continued disappointment over the trend in Japanese stocks, with hopes waning for an inflow of foreign funds into the market, and speculation of overseas investment by Japanese funds. "Sentiment is changing gradually for the dollar/yen. We can see some foreign bond demand from pension money. Money has been in Japanese stocks, which were the top performers. Maybe now it will find other investments," Inamura said. "Foreign bonds may be the alternative," he said, though adding "at 125.50, exporters are selling gradually". Meanwhile, comments overnight from John Taylor, Treasury Undersecretary for international affairs, suggest the US government will not pressure Japan over its intervention to support the dollar, despite complaints from manufacturers. "There (are) other reasons why they might want to (intervene). I don't know it all, but certainly they have the opportunity and the ability and the authority to do those interventions," Taylor told AFX News in an interview. Citibank's Inamura said the comments suggest the US is comfortable with Bank of Japan's intervention, as long as it remains an attempt to support the dollar/yen's downside. "If the BoJ is trying to push up the dollar, maybe it's a problem. If it's just stabilising the yen, it's okay," he said. The current account figures were within the consensus range and so had no impact on the market.