TOKYO (AFX-ASIA) - The dollar was stable at the 117.60 yen level in midafternoon trade amid continued fears of intervention by Japanese authorities, dealers said. Bank of Japan governor Masaru Hayami earlier told AFX-ASIA the country's currency authorities are closely watching the fall of the dollar to the 117 yen level, adding that a strong yen is unjustified. A dealer at a Canadian bank said investors are expecting Japanese authorities to step into the market at any time at current levels. "Because of fears of intervention, the dollar is currently falling gradually. Investors think Japanese authorities are ready to step into the market any time," the dealer said. Japanese authorities are expected to intervene at the 116.50 level against the dollar, the dealer said. "I think that the intention of Japanese authorities is not to allow the yen to strengthen to the 115.00 level, the highest level reached just after the Sept 11 attacks. "In order to keep the yen below that level, I guess the Japanese authorities will step into the market at around the 116.50 level," the dealer said. However, over the short-term, the dollar may enter a fresh rebound phase next week, the dealer said. "Currently, the dollar is under pressure because of the falling US stockmarket. Amid this weak sentiment, the recent series of accounting fraud cases has pushed the dollar down further," the dealer said. "But I think that next week, the dollar will rebound again on position adjustment," he said, adding he expects the dollar/yen to move in a range of 116.50-120.00 over the coming week. On the euro, the dealer said he expects the unit to turn top-heavy at the 0.9950 level against the dollar. "In addition, it is possible Japanese authorities will step into the market to (intervene in) euro/yen trading," the dealer said.