By James Ramage 
 

The Japanese yen rose modestly against the euro and the dollar Monday as investors sought to protect wealth amid concerns that Greece has moved closer to exiting the eurozone.

The yen rose 0.7% toward a five-week high against the common currency, with one euro buying Y135.50 in late-afternoon trade. The yen also increased 0.2% against the dollar, trading at Y122.54 against the U.S. currency.

Analysts and strategists expected volatile markets Monday in response to Greece's vote over the weekend to reject the terms of its international creditors' most recent proposal to extend their expired bailout. And while investors shed some stocks and emerging-market currencies, which were deemed risky, the selloff and subsequent move into haven assets, such as the yen, was subdued.

Investors have been moving into the Japanese currency, particularly against the euro, over the past couple of weeks as they doubted Greece would find common ground in its negotiations with creditors, who include the European Commission, the European Central Bank and the International Monetary Fund. The thinking held that Greece's inability to secure a new bailout deal could lead it to exit the European Economic and Monetary Union and possibly destabilize financial markets over the potential for a dissolution of the common currency.

"No one knows what this government will do with this public backing," said Jens Nordvig, global head of currency strategy at Nomura Securities International Inc. "People are very reluctant to put on fresh risk [such as equities] in their portfolios...Three years of euro crisis showed that the euro is a vulnerable thing."

Some analysts said Sunday's vote brought clarity on Greek citizens' views on undertaking further austerity measures to repair the economy in order to receive a new bailout package, while others perceived the results as driving a further wedge between the embattled country and its creditors.

Alan Ruskin, global head of developed-market currency strategy at Deutsche Bank, wrote in a research brief that the markets were resilient Monday because most participants remain optimistic that Greece will reach a deal with its creditors or believe that Greece's exit from the eurozone wouldn't disrupt global markets over the short term.

The euro retreated 0.5% against dollar to $1.1057. The common currency pulled back from $1.1002 reached earlier in the Americas session.

 
Write to James Ramage at james.ramage@wsj.com