FOREX-Yen down on Japan intervention but not likely to last

* Yen tumbles as Japan intervenes to sell yen vs dollar

* Analysts say safe-haven yen to keep gaining

* ECB keeps rates steady, Trichet says bond buying ongoing

(Updates prices, adds quotes)

By Julie Haviv

NEW YORK, Aug 4 (Reuters) - The yen slid on Thursday after
Japan intervened to curb its strength to support the country's
export-led economy, a move that should have a fleeting impact
as global economic concerns keep demand for the safe-haven
currency high.

Japan's intervention came one day after the Swiss National
Bank unexpectedly cut interest rates to cap a soaring Swiss
franc. While the yen tumbled during the Asian and European
session, losses were later pared as risk-aversion reigned.

Constant yen selling versus the dollar by Japanese
authorities during the European session briefly pushed the
dollar above the psychologically key 80 yen level, traders
said. Tokyo had been steady yen sellers in the Asian market.

"Japan and Switzerland can do all they want to slow
appreciation, but they will not be able to stop it," said Peter
Schiff, CEO of Euro Pacific Capital, based in Westport,
Connecticut.

"Japan and Switzerland should not intervene because
economic growth and a strong currency go hand-in-hand and
history shows that," he said. "When America was a mighty
industrial power, it also had the strongest currency in the
world."

Euro Pacific Capital has $3 billion in client assets under
advisement.

A voracious appetite for safety ensued as investors fret
about sluggish global growth and peripheral debt woes, causing
European and U.S. stocks to plunge and U.S. Treasuries to
soar.

"It is a stupid thing when policymakers try to weaken their
currency," Schiff said.

Japan's move had pushed the U.S. currency JPY=EBS roughly
4 percent higher to a three-week high of 80.25 yen, according
to electronic trading platform EBS. Gains were later sharply
pared and it last traded at 78.98 yen, up 2.5 percent.

On Monday, the dollar hit a four-month low of 76.29 yen,
close to its record trough of 76.25 yen hit in March after the
earthquake.

Euro gains were also curbed and last traded at 111.74
EURJPY= yen, up 1.3 percent. Yen selling had earlier sent the
euro zone single currency more than 3 percent higher against
the yen.

Japan sold one trillion yen, or $12.5 billion. For more see
[ID:nL3E7J41YW]. Finance Minister Yoshihiko Noda confirmed
Tokyo had intervened, saying Japan had acted alone but was
communicating with other countries on the move.
[ID:nT9E7IP021]

"Japan is being very aggressive in their intervention and
the process has been more aggressive than usual," said Brad
Bechtel, managing director and head of sales at Faros Trading
in Stamford, Connecticut.

"Japan was not only looking at the pace of appreciation of
the dollar/yen, but also the cross rates with China and Korea
as they are their biggest competitors."

The BOJ conducts intervention on behalf of the Ministry of
Finance, which is in charge of currency policy.

Japan's intervention was its first since March 18 when the
BOJ and other major central banks jointly intervened after the
yen surged to a record high versus the greenback.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Japan tries to tame yen: [ID:nL3E7J409F]

Timeline on yen intervention: [ID:nL3E7J20DQ]

Japan faces uphill battle on yen: [ID:nL3E7J408Y]

Past Japan FX intervention:

link.reuters.com/tyf82s

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Meanwhile, European Central Bank President Jean-Claude
Trichet said that the bank's bond-buying program is continuing.
[ID:nFAT007235] Trichet's comments followed the ECB's
announcement it was keeping interest rates steady
[ID:nL6E7J411S]

After a brief bounce, the euro fell below $1.42 EUR-EBS
against the dollar after trading above it as markets were
disappointed that the ECB bought smaller amounts of peripheral
bonds. It last traded at $1.4154, down 1.2 percent.

European traders had earlier said the ECB was in the market
buying Portuguese and Irish sovereign debt.
(Additional reporting by Naomi Tajitsu and Anirban Nag in
London; Editing by Kenneth Barry)