The dollar moved up modestly to levels around ¥109.50 as a risk-on mood prevailed in Tokyo trading Monday.

At 5 p.m., the dollar stood at ¥109.49-53, up from ¥109.37-37 at the same time Friday. The euro was at $1.300-1300, down from $1.348-1349, and at ¥123.72-72, down from ¥124.11-13.

After hovering in a range slightly lower than ¥109.70 on a firm note, the dollar met with selling by Japanese exporters around mid-morning. In the afternoon, the greenback went sideways around ¥109.50 amid a dearth of fresh trading incentives.

Unexpected improvement in the U.S. job market in May, shown by a Labor Department report Friday, strengthened risk appetite, lifting the greenback closer to ¥110 in overseas trading. But in Tokyo the U.S. currency was sold vis-a-vis the yen by profit-takers, traders said.

"The dollar-yen pair is now consolidating in the ¥109 range after a rapid ascent," a Japanese bank official said. "Chances cannot be ruled out that the dollar will top ¥110 anytime soon."