TOKYO (AFX-ASIA) - The dollar continued to firm against the yen in midafternoon trade on the back of a sharp decline on the local equity market, dealers said. "There is also talk that European institutional investors are beginning to unload their positions on Japanese equities, to compensate for losses sustained on equity markets at home," said Toshikazu Shimamura, foreign exchange manager at North Pacific Bank. "Such capital repatriation seems to be hitting the yen today (both against the euro and the dollar." But the dollar turned top-heavy around the mid-117 yen level because of selling pressure from Japanese exporters, dealers said. "Selling by exporters is expected to become much stronger above the 117.50 yen and towards the 118 yen level," Shimamura said. "But if the dollar is able to to break through the mid-118 yen level for some reason, the currency may trend towards the 120 yen level." The euro was weaker against the dollar, weighed down by uncertainty about the economic trend in the euro zone following the release of a weak Ifo business climate survey in Germany, dealers said. The Ifo Institute said the West German business climate index fell to 89.9 in July from 91.3 in June, but was up from 89.6 in July last year. Economists there had forecast the Ifo business climate index would fall to 91.0 in July. "The outcome may mean that economic activity in the euro zone is beginning to see adverse impact from the sluggish economic activity in the US," Shimamura said. "Given emerging concerns over the trend of economic activity in the euro zone, the euro may enter a mild correction phase in the near-term."