* Nikkei pokes above Ichimoku cloud, but mood cautious
* Retail investors looking to sell on rallies -analyst
* Kyorin jumps after report Sawai wants to acquire it
By Masayuki Kitano
TOKYO, Sept 21 (Reuters) - Japan's Nikkei average rose 0.4 percent and hit a seven-week intraday high on Tuesday, with resource-related shares such as Mitsubishi Corp climbing after oil, gold and other commodities gained the previous day.
Mid-sized drugmaker Kyorin soared on a report that generics drug maker Sawai Pharmaceutical Co wanted to acquire it.
A rise in U.S. shares the previous day and the yen's recent slip back from a 15-year high against the dollar in the wake of last week's currency intervention by Japanese authorities helped lend support to Tokyo shares.
"It's hard to be bullish, but excessive worries that the market might fall have receded," said Yutaka Miura, a senior technical analyst at Mizuho Securities.
The Nikkei rose 0.4 percent to 9663.54, and hit a seven-week intraday high of 9704.25.
The broader Topix index gained 0.4 percent to 855.46.
The Nikkei edged above resistance near 9,660, which is right around the top of the cloud on daily Ichimoku charts. A clear break of that level would be a bullish sign.
Market players, however, remain cautious about the outlook.
"If you ask whether the mood has turned positive, it is hard to say yes, even if a worsening in market sentiment has come to a halt," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.
Worries persist that the yen may strengthen again, even in the wake of last week's currency intervention by Japanese authorities.
Japan sold an estimated 1.8 trillion yen (over $21 billion) last Wednesday, a record for a single day, to help its exporters and to counter deflation, with Prime Minister Naoto Kan pointing to more potential yen selling.
Masayuki Doshida, market analyst at Matsui Securities, said gains in Tokyo shares may be limited due to potential selling by retail investors, who had bought Tokyo shares back in April to June, even as the market fell over that span.
Kyorin surged 16.2 percent to 1,403 yen. The Nikkei business daily said on Saturday that Sawai Pharmaceutical had bought almost 5 percent of Kyorin and had sent it an acquisition proposal.
Among resource-related shares, Mitsubishi Corp rose 1.2 percent to 1,978 yen and Mitsui & Co Ltd gained 1.5 percent to 1,210 yen. (Editing by Edwina Gibbs)