Singapore, Aug 20: Simex Euroyen futures edged to new contract highs again on Wednesday on indications Japan's construction sector was facing further financial difficulties.

Dealers said the market continued to be supported by Tuesday's news that another Japanese construction firm, Daito Kogyo Co Ltd, had filed for court protection from creditors.

But they said the gains were on thin volumes and the lead March Euroyen contract appeared to be nearing a ceiling as the market had almost entirely priced in the prospect of steady Japanese interest rates.

"There's no real new buying. This is just short-covering because it's been creating new highs the last few days," a trader at a Japanese futures house said.

March Euroyen stood at a high of 99.31 at 11:10 GMT against an IMM close at 99.28. Volume was 7,360 lots. The next resistance is seen at 99.33/35."We'll see strong buying on dips to 99.25/26 because there are a lot of shorts in the market," the trader said.

)Japanese government bond futures for September ended at 127.26 against their previous 127.19.

Eurodollar futures hardly flinched all day as the market had discounted the US Federal Reserve's decision to hold short-term rates steady at its policy meeting on Tuesday.

December Euro dollars ended at 94.150 against their IMM close at 94.145 on volume of 3,215 lots.

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