Tokyo, Aug. 1 (Jiji Press)–The dollar retained its strength above 120 yen in Tokyo Friday amid a wait-and-see mood ahead of the releases later in the day of major U.S. economic indicators like Julyjobs data.

At 5 p.m., the dollar stood at 120.37-40 yen, up from 120.09-12 yen at the same time Thursday. The U.S. currency traded most actively at 120.40 yen, against Thursday’s 120.10 yen.

The euro stood at 1.1207-1210 dollars at 5 p.m., down from 1.1326- 1329 dollars late Thursday, and at 134.93-97 yen, down from 136.04- 08 yen.

The dollar steadily lost ground in the morning due to position- adjustment selling ahead of the U.S. jobs data.

In midafternoon, the dollar fell further to a low of 120.29 yen as selling was prompted by rumors of a hedge fund failure, traders said.

But the dollar turned up to a high of 120.69 yen later on yen selling following the Financial Services Agency’s business improvement orders to 15 Japanese banks and banking groups, said Kengo Suzuki, a trader at Shinko Securities Co.

The July employment statistics will be the most important U.S. economic indicator this week, Suzuki said.

If it shows a sign of improvement in the severe U.S. labor market, the dollar will test its upside above 121 yen, he said.