* Nikkei hit by profit-taking after 4 days of gains
* Wall Street's reaction to Obama's economy plan eyed
* Nikkei holds above 25-day moving average
By Shinichi Saoshiro
TOKYO, Sept 7 (Reuters) - Japan's Nikkei stock average fell 0.3 percent on Tuesday, dented by profit-taking after four straight days of large gains and as the yen's strength shows little sign of abating.
But the Nikkei managed to hold above its 25-day moving average around 9,210, a sign that the index could resume climbing once the profit-taking was absorbed.
"The time was ripe for investors to lock in profits as the Nikkei had risen sharply over the past few days," said Masumi Yamamoto, a market analyst at Daiwa Securities Capital Markets.
"The market appears to have enough momentum to eventually overcome this selling, although participants may first want to see how Wall Street reacts to President (Barack) Obama's stimulus plans."
The benchmark Nikkei fell 22.71 points to 9,278.61. It has recovered about 5 percent this month following a 7.5 percent slide in August but remains one of the worst performing major world stock markets this year, hurt by worries about the impact of the yen's strength on corporate earnings and the fragile economic recovery.
The broader Topix edged 0.1 percent lower to 838.16.
U.S. markets were closed on Monday for the Labor Day holiday.
Investors will be keeping an eye on the Bank of Japan as it wraps up a two-day policy meeting. Many expect the central bank to keep monetary policy unchanged as it has already eased at an emergency meeting last week. (Editing by Edwina Gibbs)