/www.fxserver.com/ The dollar firmed slightly midafternoon after bouncing off the 121.50 yen level earlier following recent long-liquidations ahead of the US Thanksgiving holiday, dealers said.
Investors are also cautious ahead of tonight's Beige Book of economic conditions in the US.
"I heard at 121-half institutional investors are waiting but I think (the support is) not so tough. The short-term range (over a week) will be 120-123 yen," said Koji Fukaya, chief analyst at Bank of Tokyo-Mitsubishi.
"The market's carefully watching the Beige Book," he added.
The dollar could resume its gradual uptrend after Thanksgiving.
"Usually in December, US corporate or institutional investors repatriate funds from overseas affiliates and this pushes the dollar higher against other currencies," Fukaya said.
"This year there is lower growth so dividends from overseas affiliates will be lower and pressure should be less," he said, adding the dollar is unlikely to push above the 124 yen level, or fall below 119.
The dollar may also be capped by the possibility of further interest rate cuts by the Federal Reserve, he said.
"The market will speculate over more interest rate cuts in January so there will be gradual downside pressure."
Tokyo 2.43 pm Tokyo 10.00 am Sydney 9.30 am
Dollar
yen 121.67 up from 121.60 121.58
sfr 1.4822 up from 1.4814 1.4828
Euro
usd 0.9934 up from 0.9933 0.9937
stg 0.6395 down from 0.6396 0.6403
yen 120.86 up from 120.78 120.82
sfr 1.4724 up from 1.4714 1.4734
Sterling
usd 1.5532 up from 1.5529 1.5521
yen 188.97 up from 188.83 188.73
sfr 2.3021 up from 2.3004 2.3012
Australian dollar
usd 0.5605 up from 0.5594 0.5598
stg 0.3608 up from 0.3602 0.3607
yen 68.19 up from 68.02 68.05
© AFX News