* Fujii scales back rhetoric in support of strong currency
* Comments spark brief slide in yen against dollar
By Stanley White
TOKYO, Sept 29 (Reuters) - Japanese Finance Minister Hirohisa Fujii said on Tuesday that currency intervention is possible in extreme cases, Jiji news reported, his boldest comments so far in curbing speculation that he favours a strong yen.
Fujii also said currency moves have been too one-sided and sudden, according to Jiji, prompting the yen to slide briefly against the dollar.
The yen's surge to an eight-month high against the greenback on Monday has prompted the finance minister to backtrack on earlier comments that he wanted to avoid currency intervention and that a strong yen was good for Japan's domestic demand.
The yen dipped to an intraday low of 90.04 per dollar on trading platform EBS after Jiji reported Fujii's comments, from around 89.88 beforehand. But the currency pair quickly came back to levels before he spoke.
Japan's currency hit 88.22 against the dollar on Monday, according to Reuters data, the highest level since January.
The yen has been steadily rising this month as Fujii, chosen to be finance minister after voters swept the Democratic Party to power at the end of August, had repeatedly said he didn't see the need to weaken the yen for the sake of the country's exporters and that a strong currency also has benefits. (Editing by Hugh Lawson)