TOKYO (AFX-ASIA) - The dollar was slightly higher against the yen in midafternoon, with gains capped by a lack of follow-through buying following the rally overnight on concerns over Japanese banks' possible exposure to Enron, dealers said. "That talk seems to be nothing more than rumours delivered by those speculators who wanted to generate some short-term trading gains," Kokusai Securities foreign exchange trading department manager Minoru Shioiri said. "Many participants just took advantage of such speculation to re-sell the yen after confirming the strong downside support near the 123.00 yen level." Overnight, the yen slid on the talk of possible financial problems at UFJ due to its exposure to Enron. Nomura Trust and Banking Co Ltd foreign exchange assistant manager Teruhisa Moriyasu, however, said that no one can have a full and accurate picture of the exposure to Enron of financial institutions. "What was true was that many MMF (money management funds) saw a decline in their value due to Enron and some Japanese financial institutions have some exposure to such investment vehicles." The dollar, however, failed to extend its gains due to some caution ahead of the release today of US revised third quarter GDP data, dealers said. "The market is now extremely sensitive to any yen-negative leads or speculation but the dollar, given its top-heaviness overnight, appears to have already peaked out of the rebound which started at 119 yen," Shioiri said. "The durable goods data was good but consumer confidence data was poor, which means there is no guarantee of recovery for the US economy ahead." Shioiri, however, said that if the dollar is able to reach the mid-124 yen level in offshore trading later today, the unit may test the 125 yen level for technical reasons.