TOKYO (AFX-ASIA) - The dollar was stable at higher levels in midmorning trade after it broke key resistance against other major currencies overnight, triggering stop-loss selling of euro- and yen-long positions, dealers said. ABN Amro foreign exchange manager Toshihiko Masaki said the dollar has stabilised after breaching key resistance against both the euro and yen as long positions were unwound on waning concerns over the attacks on the US. He added that the market is dominated by short-term players such as US and European hedge funds, with Japanese corporates and portfolio investors sidelined and technical levels becoming more important for direction than fundamentals. "People are again becoming bearish for the euro/dollar" given its persistent failure to hold onto long-term gains, Masaki said, adding that he believes the sharp losses in the past few days were largely technical. "The market is talking about the fundamentals between the US, Europe and Japan ... but this is just an excuse to me. We have to be careful over a euro recovery from low levels," he said. "The positions accumulated after the Sept 11 terrorist attack -- the euro-long positions and yen-long positions -- have been forced out. I suppose there are no more (such) positions." Technical support was breached in the euro/dollar at 0.8990 and the dollar/yen at 122.08, forcing further stop-loss selling, Masaki said, adding that the 122.08 yen was a key resistance point ahead of the Sept 11 attacks. Key support for the euro/dollar is now seen around the 0.8850-90 level, while resistance is around 0.9100, and the dollar faces resistance at 122.70-75 yen, with support at 122.05 in the near-term. "My view is that the dollar is close to the upside resistance," Masaki said, although noting that the euro's recovery may be a slow one and that the market is unhappy about the possibility of a further delay in lowering European rates. "There is a 50-50 chance for a 25 basis point cut (on Thursday) so the market has been disappointed," he said.