* Yen rebounds as investors tip-toe back after sharp fall
* Rally in Tokyo shares fails to dent the yen
* Weekend G20 meeting expected to provide little direction
By Kaori Kaneko
TOKYO, Nov 14 (Reuters) - The yen edged up against the dollar and the euro on Friday after a sharp fall the previous day, as investors tip-toed back to the perceived safety of the Japanese currency amid nagging concerns about the global credit crisis.
A rally on Wall Street the day before eased risk aversion and triggered a steep drop in the yen against the dollar and euro, but market players failed to find other reasons to move beyond short-covering, traders said.
"The anxiety caused by the financial market turmoil has not disappeared from the market's overall tone. So demand for the dollar and the yen driven by flight-to-safety will likely remain," said Yousuke Hosokawa, senior manager at Chuo Mitsui Trust and Banking.
"The market just can't brush away its worries about issues such as how large the losses by U.S. financial corporations will be and whether the $700 billion U.S bailout plan will suffice," he said.
A rally in Tokyo shares on Friday failed to dent the yen as it did not fully ease risk aversion, traders said.
The Nikkei stock average climbed 4.3 percent following the jump in U.S. stocks.
"The currency market's performance reflects investors' doubt over whether the rapid gains on Wall Street are sustainable. It is difficult to take a bearish view on the dollar and the yen," said Nobuaki Kubo, vice president at BBH Investment Services.
The market is expected to grow more risk-averse if the euro zone third-quarter gross domestic product deteriorates as expected, traders said. The data is due to be released later on Friday.
Euro zone GDP for the quarter is seen contracting 0.2 percent, bringing the annual rate of growth down to 0.7 percent.
On Thursday, data showed German GDP contracted by 0.5 percent in the third quarter, putting Europe's biggest economy into recession for the first time in five years
The Group of 20 developed and emerging nations are meeting this weekend in Washington to discuss steps to address the financial crisis, but traders said the outcome is not expected to provide much direction to the market.
The dollar fell 0.6 percent to 97.15 yen from 98.10 yen in early trade. Traders said that real demand for the yen from exporters rose when the Japanese currency fell sharply the previous day.
The euro dipped 0.6 percent to 123.99 yen on trading platform EBS after rising as high as 125.72 in early trade. The single currency dropped to a two-week low below 118 yen on Thursday.
The single European currency edged down 0.1 percent to $1.2758 but stayed above a two-week low of $1.2388 hit the previous day. (Additional reporting by Shinichi Saoshiro; Editing by Sophie Hardach)