FOREX-Yen pauses after gains, U.S. earnings eyed

* Liquidation of cross/yen long-position runs its course

* Impact from China tightening move likely waning

* Long Aussie positions cut but impact seen limited

By Kaori Kaneko

TOKYO, Jan 13 (Reuters) - The yen paused in its gains on Wednesday after investor closing of long positions in the likes of the dollar, euro and higher yielding currencies appeared to have run its course and the focus shifted to U.S. company earnings.

China's central bank surprised world markets on Tuesday by taking a step toward tighter policy, lifting the Japanese currency while commodity currencies such as the Australian and the New Zealand dollars slipped as investors unwound short-yen positions. [ID:nTOE60B095]

But yen crosses stabilised on Wednesday after losses in Shanghai's share market .SSEC from the tightening seemed to contained and investors judged that the move would not derail China's growth, traders said.

"Yesterday's fall in yen crosses was nothing more than we often see when these volatile rates are in a correction phase. I don't expect that to spark a series of loss-cutting selling of other currencies against the yen," said Hideki Hayashi, a global economist at Mizuho Securities.

The dollar was hovering around 91.08 yen JPY=, having lost more than 1 percent on Tuesday to as low as 90.73 yen.

Technically a break of the 91.25/90.75 yen support zone meant there was an increased risk of additional retracement for the dollar. The next line of support was seen around the 90.36/90.00 yen area, which includes a 38.2 percent retracement from its November low.

China's surprise move on Tuesday to raise bank reserve requirements led investors to cut sizeable long positions in the Australian dollar.

Many investors had been borrowing in yen to buy a range of assets leveraged to Chinese and global growth.

Adding to the negative tone for risk trades and high-yielding currencies on Tuesday was a weak start to the U.S. earnings season. Alcoa Inc's (AA.N) opened the U.S. earnings season with results that missed forecasts while Chevron Corp (CVX.N) issued a profit warning. That combined with concerns about a potential U.S. government levy on banks to hit stocks.

Some traders said there might be a little more room to fall in dollar/yen and cross/yen in the wake of China's step. But the market was not minded to use the Chinese move on Tuesday as a main trading factor, said a trader at a Japanese bank.

"Since more earnings from U.S. major corporations will be released, players will be watching how they affect U.S. share prices and Treasury yields," he said.

The dollar index .DXY, which measures the value of the greenback against a basket of currencies, edged up 0.1 percent to 77.063, off a four-week low of 76.758 touched on Tuesday.

The euro was little changed at 131.71 EURJPY=R yen, having fallen 1.4 percent on Tuesday with support seen around the 131.20 yen area.

The Australian dollar rose 0.3 percent to 83.93 yen AUDJPY=R, having registered its biggest daily drop in eight weeks on the China news. Support is seen around the 83.00/20 yen level, traders said.

Mizuho Securities' Hayashi said investors find the Australian dollar attractive at below 84 yen so the currency is unlikely to extend its slide from the current level.

"There has been no change in the tightening stance of Australia's central bank. That will keep lending the Aussie support," he said.

The Aussie AUD=D4 held just above $0.9200, after it fell more than 1.2 percent on Tuesday, with investors cutting long positions on the slide.

The euro EUR= was at $1.4476, getting some support from comments by Greek Finance Minister George Papaconstantinou.

Worries about Greece's financial situation have weighed on the euro in recent weeks. But Papaconstantinou told a German newspaper on Tuesday that Greece had no more skeletons in the closet, and had a solid basis for cutting its deficit. [ID:nLDE60B1LK]. (Additional reporting by Anirban Nag in Sydney, Rika Otsuka and Satomi Noguchi in Tokyo; Editing by Michael Watson)