The U.S. dollar slipped against the Japanese yen in Asian trading Monday amid lingering speculation about China's possible yuan revaluation. The dollar was trading at 105.27 yen by midafternoon in Tokyo, down 0.60 yen from late Japanese financial markets were closed Friday for a national holiday. Many market players expect the yen to remain firm against the dollar and the euro in the near-term on lingering speculation that China may soon shift to a more flexible currency regime. "China is the hottest theme in the currency market now, but all we can do is wait for Beijing's announcement on when it'll let its currency appreciate," said Ryuichi Atsuta, head of foreign exchange trading at Bank of America's Tokyo branch. "The yen will remain strong as long as there's speculation over the timing" of the change, Atsuta said. China keeps its currency, the yuan, effectively pegged to the dollar, allowing it to trade within a thin band of 0.3 percent either side of 8.277 yuan to the dollar. Some market players argue that Asian currencies, including the yen, could rise if the yuan heads up as a result of Beijing loosening the currency peg. That's because a higher yuan would make exports from Asian nations competitive relative to Chinese goods, they say.