The US dollar was little changed against the yen in early afternoon trade here, with few market players in Asia willing to make aggressive bets, dealers said. Analysts said the yen maintains its modestly bullish bias, but a flurry of dollar-bids near the 109 yen level involving option plays and demand from importers should keep the US unit above that mark in the short term. "The yen will likely rise step by step on growing expectations that the economy is emerging from its soft patch," said Osamu Takashima, chief currency strategist at Bank of Tokyo-Mitsubishi. But Takashima said he does not expect the Japanese currency to breach the 109 yen level any time soon given a lack of fresh leads to push the unit decisively higher. "With many market participants now away on vacation, short-term speculators tend to dominate the market, but I doubt if they have enough momentum to breach 109 yen decisively in a few days," said Kanako Oikawa, strategist at Traders Securities. At 12.52 pm (0352 GMT), the dollar stood at 109.52 yen after trading in a range of 109.39-75 yen during Asian trading hours. It was at 109.50 yen earlier in Sydney and 109.52 in New York overnight. The euro was trading at 1.2332 usd compared to 1.2344 usd in Sydney today and 1.2358 usd in New York. It moved here between 1.2336 and 1.2369. Nonetheless, Oikawa said she expects overseas players to step into the market to boost the yen's value against the dollar on the back of gains in Japanese stocks. "The Nikkei index ended the morning higher again today after the blue chip marker posted a four-year high yesterday. Speculators overseas tested the yen's upside yesterday but they could try to break the 109 yen level again in London or New York," Oikawa said. The Nikkei 225 index was up 50.71 points or 0.4 pct at 12,366.38 at midsession today. It ended yesterday at 12,315.67, the highest close since Aug 7, 2001, when it ended at 12,319.46. Helping support the yen's upward sentiment include was an easing of concerns over possible political instability after Prime Minister Junichiro Koizumi dissolved parliament and called a snap election, she said. The approval rating for the Koizumi government increased to 51 pct in the latest poll from 46 pct immediately after the call for a snap vote, according to a survey by the Asahi newspaper. "This has ensured a steady inflows of foreign funds, which will be positive for the yen from a longer perspective," Oikawa said.