* Euro up 0.8 percent at 134.10 yen
* Market awaits more U.S. earnings, data
(Releads, adds quote, updates prices)
By Tamawa Desai
LONDON, July 23 (Reuters) - The yen fell broadly while the dollar was pressured on Thursday as risk sentiment held up on higher shares and commodity prices.
The market focused on more U.S. corporate earnings due out later in the day to gauge the economic outlook. Most second-quarter results have exceeded forecasts, but there are growing concerns as to whether companies' profits will continue rising later this year, which capped gains in riskier assets.
The yen was a clear loser among major currencies, with traders adding the yen's fall was triggered by technical selling of yen versus euro during Asian hours.
"A modest rally in U.S. equity futures drove yen crosses higher," said Adam Cole, global head of FX strategy at RBC Capital Markets.
By 1059 GMT, the euro rose 0.8 percent against the yen to
134.10 yen
Sterling gained 1.1 percent to 155.70 yen
Currencies perceived as higher risk such as the Australian and New Zealand dollars also gained against the yen and dollar.
The Aussie dollar hit a three-week high against the yen
Meanwhile, the euro
The pair traded in a narrow $1.4200-1.4266 range, around where options were seen expiring later in the day. IFR reported that 200 million euros with a $1.4245 strike price would expire at the New York cut, along with 300 million euros at $1.4250.
The dollar index <.DXY> was flat at 78.767, slightly higher than a seven-week low of 78.563 hit the previous day.
Tokyo shares ended higher, while U.S. Nasdaq index rose the previous day. European shares were flat. U.S. S&P stock futures index rose, pointing to a higher Wall Street open.
U.S. crude oil futures held above $65 per barrel
Investors awaited more second-quarter earnings such as
American Express
"Recent earnings data are helping risk appetite, but nevertheless, the upsides of risky currencies are capped as the market realises that improvements in the global economy will be slow," said Ulrich Leuchtmann, currency strategist at Commerzbank in Frankfurt.
Improving risk appetite from Japanese retail investors may provide a floor for dollar/yen, Bank of Tokyo-Mitsubishi UFJ analysts said in a note, pointing out overall margin trading yen short positions in early July hit its highest level since October last year, according to Tokyo Financial Exchange data.
"Without another major shock to the financial markets that retail outflow in itself will limit the downside for dollar/yen," they said.
Some 20 billion yen worth of "toshin" Japanese investment trusts will be launched on Friday to invest in overseas assets and foreign currencies.
The Swedish crown rose to a three-week high versus the euro