/www.ananova.com//The dollar was flat in thin midmorning trade after pushing close to the 120 yen level, but with selling interest by Japanese exporters preventing further gains, dealers said. "The 120 yen is an interesting level for the exporters, so they would have an interest to sell there," said Ryohei Muramatsu, treasury and forex manager at the Tokyo branch of Commerzbank.The dollar is strongly supported at its previous resistance of 119.20 yen, with the next technical resistance seen at 120.20 yen, as well as the psychological barrier at 120 yen, Muramatsu said.
"Those who sold before have started to buy back but the rebound in the US equity market is just technical," he added."The fundamentals have not changed at all. There is a twin (trade and budget) deficit and also, we have fears about individual consumption. Only the sentiment about the accounting problem has improved," he said.
The euro/dollar is supported at 0.9640, Muramatsu said, after breaching key support at 0.9725 overnight, and with resistance now seen at 0.9760.
"The positive outlook for the European economy has faded because of several weak figures and the floods. There's no reason to buy the euro in the short-term," he said, adding that the weak euro is pressuring the dollar/yen.
Tokyo 10.00 am New York 3.03 pm London 3.55 pm
Dollar
yen 119.88 up from 119.84 119.63
sfr 1.5189 up from 1.5181 1.5108
Euro
usd 0.9689 down from 0.9700 0.9731
stg 0.6380 up from 0.6376 0.6383
yen 116.15 down from 116.24 116.44
sfr 1.4716 down from 1.4724 1.4701