* Euro up 0.8 percent at 134.10 yen <EURJPY=>
* Market awaits more U.S. earnings, data
(Releads, adds quote, updates prices)
By Tamawa Desai
LONDON, July 23 (Reuters) - The yen fell broadly while the
dollar was pressured on Thursday as risk sentiment held up on
higher shares and commodity prices.
The market focused on more U.S. corporate earnings due out
later in the day to gauge the economic outlook. Most
second-quarter results have exceeded forecasts, but there are
growing concerns as to whether companies' profits will continue
rising later this year, which capped gains in riskier assets.
The yen was a clear loser among major currencies, with
traders adding the yen's fall was triggered by technical selling
of yen versus euro during Asian hours.
"A modest rally in U.S. equity futures drove yen crosses
higher," said Adam Cole, global head of FX strategy at RBC
Capital Markets.
By 1059 GMT, the euro rose 0.8 percent against the yen to
134.10 yen <EURJPY=> after hitting a session high of 134.52 yen,
while the dollar was also up 0.8 percent at 94.39 yen <JPY=>.
Sterling gained 1.1 percent to 155.70 yen <GBPJPY=>.
Currencies perceived as higher risk such as the Australian
and New Zealand dollars also gained against the yen and dollar.
The Aussie dollar hit a three-week high against the yen
<AUDJPY=> and rose 0.3 percent versus the U.S. dollar <AUD=>.
Meanwhile, the euro <EUR=> was flat at $1.4211, down from a
seven-week high of $1.4278 touched earlier in the week.
The pair traded in a narrow $1.4200-1.4266 range, around
where options were seen expiring later in the day. IFR reported
that 200 million euros with a $1.4245 strike price would expire
at the New York cut, along with 300 million euros at $1.4250.
The dollar index <.DXY> was flat at 78.767, slightly higher
than a seven-week low of 78.563 hit the previous day.
Tokyo shares ended higher, while U.S. Nasdaq index rose the
previous day. European shares were flat. U.S. S&P stock futures
index rose, pointing to a higher Wall Street open.
U.S. crude oil futures held above $65 per barrel <CLc1>.
Investors awaited more second-quarter earnings such as
American Express <AXP.N> and Microsoft <MSFT.O>, as well as data
on U.S. jobless claims and existing home sales.
"Recent earnings data are helping risk appetite, but
nevertheless, the upsides of risky currencies are capped as the
market realises that improvements in the global economy will be
slow," said Ulrich Leuchtmann, currency strategist at
Commerzbank in Frankfurt.
Improving risk appetite from Japanese retail investors may
provide a floor for dollar/yen, Bank of Tokyo-Mitsubishi UFJ
analysts said in a note, pointing out overall margin trading yen
short positions in early July hit its highest level since
October last year, according to Tokyo Financial Exchange data.
"Without another major shock to the financial markets that
retail outflow in itself will limit the downside for
dollar/yen," they said.
Some 20 billion yen worth of "toshin" Japanese investment
trusts will be launched on Friday to invest in overseas assets
and foreign currencies.
The Swedish crown rose to a three-week high versus the euro
<EURSEK=R>, as Sweden's jobless rate came in a
lower-than-expected 9.8 percent in June, holding below the
psychologically important 10 percent [].
(Additional reporting by Naomi Tajitsu; Editing by Andy
Bruce/Victoria Main)
