Japan PM Kan: Will continue watching yen carefully -Jiji

TOKYO Aug 14 (Reuters) - Japanese Prime Minister Naoto Kan said he would continue to watch the yen carefully, news agency Jiji reported on Saturday.

Kan said it is yet to be decided how and when he would meet with Bank of Japan Governor Masaaki Shirakawa to discuss the recent surge by the yen, but that he would like to communicate as necessary, Jiji reported.

Kan's comments came amid speculation the prime minister and the central bank governor may meet as early as next week to discuss the yen's strength and possible responses, although likely options are seen as limited.

The dollar stood at around 86.20 yen JPY= more than a yen above Wednesday's 15-year low of 84.72, on the prospect that Japanese officials will increase verbal intervention to try to stem yen gains.

But traders said the yen was likely to gain longer term, because the Group of Seven countries are unlikely to agree to joint foreign exchange market intervention to strengthen their currencies as their own economies are not recovering strongly.

(Reporting by Shinichi Saoshiro; Editing by Sanjeev Miglani)