FOREX-Dollar firm ahead of jobs data, yen drops

* Dlr holds gains ahead of key jobs numbers

* Yen stays under pressure as investors trim long positions

* High-yielders firm, may gain on improving demand for risk

By Anirban Nag

SYDNEY, June 4 (Reuters) - The U.S. dollar retained broad gains on Friday ahead of key U.S. jobs numbers which could stoke optimism about future growth in the world's largest economy and could also give a boost to higher-yielding currencies.

But the euro stayed under presure at around $1.2170, not far from a four-year low of $1.2110, with debt problems and worries about the region's financial sector still weighing down on investor sentiment.

There is talk of huge double-no-touch options with a $1.21-$1.25 range set to expire later on Friday, which could keep the currency bottled up for now.

The dollar index <.DXY> was at 87.11 and not far from 15-month highs, with the focus on the 87.47 resistance area if the jobs numbers surprise on the upside.

A Reuters poll forecast U.S. payrolls data to show 513,000 jobs created in May. [ID:nN02176933]. Some in the market though are anticipating an even stronger figure. On Thursday, data showed U.S. private employers added 55,000 jobs in May, according to a private report.

For details, see [ID:nEAP102300] and [ID:nN02211844].

"There is talk of 600,000 jobs being added and that kind of numbers will show that the U.S. economy is showing considerable momentum," Tony Morriss, senior currency strategist at ANZ.

A robust number would fuel expectations that the U.S. Federal Reserve will move first in tightening rates, especially at a time when the Bank of Japan is still tackling deflation and the European Central Bank is struggling with the region's debt woes.

Morriss added a strong non-farm payrolls number should also give a leg up to riskier assets and higher-yielding currencies.

The Australian dollar was marginally higher $0.8436 and 0.28 percent against the yen at 78.18 yen.

The U.S. dollar was slightly higher versus the yen at 92.63 yen, while the euro was up 0.2 percent against the Japanese currency at 112.78.

The yen has been broadly under pressure against the U.S. dollar, and on the crosses, in the past few session as investors pared long yen positions built amid a spike in risk aversion last month.

Also, with the market speculating Japan's next prime minister would take a tougher stance in fighting the yen's strength, traders took that as an opportunity to cut positions.

Japanese media reported on Friday that Finance Minister Naoto Kan looked all set to become the next premier. [ID:nTOE65208V]

Kan surprised markets earlier this year by saying he wanted the yen to weaken more and that most businesses were in favour of a dollar/yen rate around 95 yen. (Editing by Wayne Cole)