The US dollar remained firm against the yen and euro in early afternoon trade here, still supported by the robust US employment data released on Friday although overall activity was hushed as investors await the resumption of trading in New York, dealers said. The Labor Department said Friday that the US economy added 180,000 jobs in March, exceeding the 165,000 economists had expected. The strong US employment data, which was accompanied by a slight decline in the jobless rate, helped ease anxiety about the current state of the US economy. The data followed a series of indicators that pointed to economic weakness, sending the US currency to its lowest level in two years against the euro last week. Shuichi Kanehira, senior vice president at the forex division of Mizuho Corporate Bank, thinks there is more upside potential for the dollar. "The strong nonfarm payroll data had a reasonably strong impact on the market, as it came at a time when the market was speculating about a fast-paced slowdown in the US economy and the possibility of rate cuts," Kanehira said. "With sentiment towards the dollar recovering, there is a chance that the dollar may hit the 120 yen level." On the other hand, Daisuke Uno, strategist at Sumitomo Mitsui Banking Corp, believes the US unit will remain top-heavy due to caution ahead of the G7 meeting of finance ministers and central bank governors at the weekend. Uno also said that similar to the market's experience in January "some other EU members may follow suit, given the euro's recent level, creating the ground for a possible correction on the euro/yen." The euro last week reached 1.3442 usd, its highest level since March 2005. The euro reached an all-time high of 1.3667 usd in December 2004. But Mizuho Corporate Bank's Kanehira said that while the market needs to be alert to a possible verbal intervention from European authorities, any impact on the market will be limited. Meanwhile, dealers said market participants also seem reluctant in pushing the dollar sharply higher against the yen as the Bank of Japan begins its two-day policy board meeting this afternoon.