* Yen seen taking cue from share prices and risk appetite
* Euro/yen dips from day's high as Tokyo shares falter
* Japan posts trade surplus in Feb but impact on yen limited
By Masayuki Kitano
TOKYO, March 25 (Reuters) - The yen inched up against the euro and the Australian dollar on Wednesday, pulling away from this week's five-month low versus the euro, as falls in Tokyo shares tempered buying of higher-yielding currencies.
The dollar edged up against the euro after rising the previous day, when optimism about a U.S. plan to rid banks of bad assets ebbed, prompting investors to resume safe-haven buying of the greenback.
Although the yen has regained some ground after dropping on Tuesday to a five-month low against the euro and a 4-½ month trough versus the Australian dollar, it is likely to stay on the back foot, said a trader for a Japanese trust bank.
"Its role as a safe haven currency has diminished," the trader said. "There is no reason to buy the yen actively."
"With commodity prices having shown some signs of having bottomed out, the yen will probably head lower on the crosses," he said, referring to the yen's moves against higher-yielding currencies.
Oil hit a near three-month high of $54.20 a barrel on Tuesday. Such gains in commodity prices are positive for currencies of natural resource producing countries such as the Australian dollar.
The yen's reaction was subdued to data showing Japan's trade balance returned to a surplus in February. The 82.4 billion yen ($841.6 million) surplus contrasted with economists' forecasts for a deficit of 10.9 billion yen.
The surplus comes after Japan posted its largest deficit ever in January, when exports fell sharply due to a slowdown in the global economy.
The euro dipped 0.4 percent against the yen from late U.S. trade on Tuesday to 131.30 yen, having retreated from a five-month high of 134.50 yen hit on trading platform EBS on Tuesday.
The euro initially rose as high as 132.56 yen but later shed its gains. Falls in Tokyo share prices, a sign of reduced risk appetite, tempered demand for higher-yielding currencies against the yen, traders said.
Against the dollar, the euro dipped 0.1 percent to $1.3453, having come down from last week's 2-½ month high of $1.3739.
The Australian dollar fell 0.5 percent against the yen to balance is likely to remain tilted towards trade deficits, Yamamoto said.
"This data by itself does not offer much reassurance on Japan's trade balance, so there is no need to react with yen buying," Yamamoto said. ($1=97.91 Yen) (Editing by Michael Watson)