TOKYO (AFX-ASIA) - The euro continued to strengthen against other major currencies in midafternoon trading thanks to continued uncertainty over the near-term performance of Wall Street, dealers said. Mizuho Asset Trust Bank foreign exchange assistant manager Takashi Fujieda said that unless the lingering distrust over the accounting practices of US firms and concerns about the US economic outlook are fully dispelled, the euro is likely to continue to gain ground against the US currency. "Increased fund allocation towards European assets by Japanese institutional investors, including pension funds, is expected to continue to support the gain of the euro," he said. "Participants are now looking at the 0.97 usd level as the next upside target for the euro." The euro was also firmer against the Japanese yen thanks to rising fund allocation by Japanese institutional investors, dealers said. "In addition, there has been a rise in euro buying related to the establishment of more euro-denominated mutual funds, and this is also adding momentum to the euro," Fujieda said. "But, it seems that it will take more time before the euro reaches the 120 yen level." The dollar/yen was rangebound due to a lack of fresh leads, with the fall of the Japanese currency against the euro supporting the downside of the US currency, dealers said. Cautious sentiment is also limiting activity here ahead of the approaching release on July 1 of the Bank of Japan's Tankan report on business sentiment, they said. "Unless fresh market moving news emerges, the dollar/yen is likely to be nailed to around the 124.50 yen level," Fujieda said.