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TOKYO, March 10 (Reuters) The dollar held firm on Friday, keeping the previous day's gains against the yen even after the Bank of Japan ended its super-easy policy, and drawing support from hopes for a solid reading in U.S. job data later in the day.

The dollar also shrugged off news that the U.S. trade deficit widened to a record $68.5 billion in January, beyond the $66.5 billion forecast by analysts.

''The fact that the dollar rose even after the record U.S.

trade deficit seems to suggest there are so many investors out there who want to buy the dollar,'' said Mitsuru Sahara, forex manager at Bank of Tokyo-Mitsubishi UFJ.

With the BOJ expected to keep interest rates near zero for the next several months, investors will be lured to the dollar given the U.S. currency's hefty yield advantage, traders said.

Speculators may also resume yen carry trade, in which they borrow yen and invest in higher-yielding currencies.

''Expectations are building up in the market that the BOJ may wait longer than previously thought before raising interest rates. That will make it easier for people to resume carry trade,'' Mitsubishi-UFJ's Sahara added.

The Bank of Japan on Thursday scrapped its five-year-old policy of flooding the banking system with cash.

The BOJ said it would adjust interest rates after keeping them at zero for a while, but added that rates would stay extremely low as long as inflation is contained.

As of 0010 GMT, the dollar changed hands at 118.20 yen flat from late U.S. levels on Thursday, when it gained about 0.3 percent.

The euro was also little changed at around $1.1900 stuck in its recent $1.18-1.20 range. The euro stood at 140.65 yen Traders' attention is now firmly on the February U.S. jobs report due at 1330 GMT. Economists polled by Reuters expect a rise of 210,000 non-farm payroll jobs, although the ''whisper'' numbers in the market are for a higher figure.

Traders said strong reading in the payroll data could fan expectations that the Federal Reserve will raise interest rates beyond 5.0 percent, compared with 4.5 percent now.

New York Fed President Timothy Geithner said on Thursday that U.S. monetary policy may need to be tightened sufficiently to offset the downward tug on interest ratesfrom foreign central banks' buying of U.S. bonds.

Reuters AD VP0710