* Yen holds firm on worry over global recession
* Bleak Japan industrial data adds to concerns
* Mumbai attacks unleash security fear, hurt dollar
By Satomi Noguchi
TOKYO, Nov 28 (Reuters) - The yen held firm against the dollar in thin trade on Friday as fears of a long and deep global recession continued to highlight the relative safety of the low-yielding Japanese currency.
Japanese industrial production slid more than expected in October and manufacturers warned of record cuts ahead, in bleak news that points to more trouble for an economy already in recession.
The dollar, normally a beneficiary of greater risk-aversion, edged down versus a basket of major currencies after militants killed at least 119 people in Mumbai in coordinated attacks.
The assault stirred memories of the Sept. 11, 2001, attacks on the World Trade Center in New York, feeding geopolitical concerns and prompting some players to reduce their exposure to the dollar, traders said.
Activity is expected to pick up later in the day as U.S. markets reopen after the Thanksgiving holiday, but price movements in Asia could be confined to a tight range due to month-end flows.
"The market is wavering between decisive trends with too many factors to digest," said Minoru Shioiri, chief manager of foreign exchange trading at Mitsubishi UFJ Securities.
"In such market conditions and thin liquidity, only flows from corporations and such will provide direction," Shioiri said.
The dollar was trading at 95.50 yen, up slightly from late European trade on Thursday around 95.41 yen on demand from Japanese companies who need to pay for their imports at the end of the month.
But talk of Japanese investors repatriating funds provided support for the yen.
The euro was little moved around 123.10 yen.
The euro was nearly flat at $1.2880 while the dollar slipped slightly against a basket of currencies to 85.643, from around 85.671 in late London trade.
(Editing by Sophie Hardach)