* Yen advances as Goldman news spurs risk sell-off
* Dollar also holds ground after rise, gains on euro
* Aussie at lowest in 3 weeks vs yen, CFTC shows longs up
By Charlotte Cooper
TOKYO, April 19 (Reuters) - The low-yielding yen held at its strongest levels this month on Monday, gaining on higher-yielders such as the Aussie dollar as investor appetite for risk took a hit on fears about broader fallout from charges against Goldman Sachs.
With data showing a buildup in speculative long positions on the Australian dollar earlier in April, and in short positions on the yen, analysts said the market had probably been ripe for a correction in pro-risk trades after a run higher over the past couple of months.
The U.S. dollar, also a low-yielder considered a safe-haven currency, extended its gains against sterling, the euro and the Aussie after the Australian currency staged its biggest drop since early February on Friday.
Goldman Sachs Group Inc was charged with fraud by the U.S. Securities and Exchange Commission on Friday in the structuring and marketing of a debt product tied to subprime mortgages, rattling financial markets..
Germany and Britain will also seek details from the SEC as a prelude to potential legal steps, while the market is nervous of what this could mean for stricter regulation.
Traders said currencies traded against the dollar and yen felt heavy, with figures from the Commodity Futures Trading Commission showing speculative net long positions in the Australian dollar at their highest in three years.
"What is there to reassure markets and provide that good news to turn around the negative risk environment? It's not clear that there's anything positive coming," said Robert Ryan, currency strategist at BNP Paribas in Singapore.
The Australian dollar fell 0.4 percent to $0.9200, touching its lowest levels in two weeks after shedding 1.2 percent on Friday, with support expected at its April low of $0.9265. It hit its weakest since late March at 84.51 yen.
Others said the impact may not last long.
"What we are seeing is a reaction to the Goldman Sachs news, but I think this will be very short-lived with investors' focus likely to return to economic data in the next few days," said Joseph Capurso, a currency strategist at Commonwealth Bank.
The CFTC numbers also show yen shorts hit a three-year peak in the week that ended on April 13, underscoring how stretched positions were and due for a technical correction.
The dollar slipped 0.2 percent to 91.96 yen, briefly touching 91.88 yen, its weakest since late March on trading platform EBS.
One trader said Japanese importers were expected to buy dollars just below 92.00 yen and support for the greenback was expected at its 200-day moving average of 91.37 yen.
The euro fell 0.6 percent to 123.75 yen after shedding 1.5 percent on Friday. Near-term support is seen around 123.40 yen, its April 8 low.
The euro also fell 0.3 percent to $1.3462, trading at its lowest levels since April 9.
Investors are worried about the fate of a European Union-IMF aid plan to help Greece avoid a debt default. Talks with EU and IMF officials expected to start on Monday have been delayed to later in the week due to the cloud of volcanic ash disrupting flights across Europe, Greece said.
"That just means there's more uncertainty as to what's going to happen there," Ryan at BNP Paribas said.
The dollar index, a measure of its performance against six other currencies, rose 0.3 percent to 81.046, although it remains well below a 10-month high at 82.240 set in March.
The pound fell 0.6 percent to $1.5257 on persistent concerns that Britain's general election will produce no clear winner. The election is on May 6 and opinion polls indicate growing support for the Liberal Democrats, the third party in the race. (Additional reporting by Anurban Nag in Sydney and Satomi Noguchi and Kaori Kaneko in Tokyo; Editing by Michael Watson)