* Trading thin before earnings, holidays overseas
* Immediate support seen at 25-day MA of 9,588 -analyst
By Ayai Tomisawa
TOKYO, April 22 (Reuters) - Japan's Nikkei stock average slipped on Friday as exporters came under pressure from a stronger yen, while trading was subdued as investors stayed on the sidelines ahead of major corporate earnings due next week.
Analysts said there were fewer market participants on Friday as overseas markets such as the United States and Britain are closed for holidays, while investors remained cautious ahead of earnings reports next week that are expected to reveal the impact of last month's devastating earthquake on corporate profits.
Shares of Canon Inc , which reports on Tuesday, fell 2.3 percent to 3,480 yen. The Nikkei business daily said the camera and office equipment maker would likely report an 8 percent fall in first-quarter operating profit and cut its full-year forecast, reflecting the impact of the quake. [ID:nL3E7FL4FP]
"Ahead of major Japanese corporate earnings next week, investors remain cautious. Therefore, they may take profits from recent gains but they probably won't take large positions today," said Kenichi Hirano, a strategist at Tachibana Securities.
The benchmark Nikkei average was down 0.5 percent at 9,639.16 by the midday break, while the broader Topix shed 0.7 percent to 835.90. The Nikkei had gained more than 2.5 percent over the past two days.
Tokyo stocks have recouped about two-thirds of their losses suffered in the aftermath of the devastating March 11 earthquake, but trade has turned more volatile and thinned out ahead of earnings reports.
"Investors have learned to keep their expectations low, so there may not be a sharp fall in the market even if companies release conservative figures for this fiscal year," said Yutaka Miura, a senior technical analyst at Mizuho Securities.
"As long as U.S. markets sustain gains and keep providing a sign that demand is still intact, Japanese manufacturers' stocks may not be sold significantly," he said.
Miura said the Nikkei's support on Friday is seen at its 25-day moving average of 9,588.
Exporters were hurt by the stronger yen, after the dollar tumbled for a third straight day on Thursday as record low interest rates and the crushing weight of the U.S. budget deficit pushed it closer to an all-time trough against major currencies. [ID:nN21298998]
Sony Corp dropped 1.5 percent to 2,471 yen and Honda Motor shed 1.1 percent to 3,040 yen.
But oil shares outperformed on rising crude prices, with JX Holdings rising 1 percent to 530 yen and Japan Petroleum Exploration gaining 0.1 percent to 3,925 yen.
Yaskawa Electric surged 5.9 percent to 914 yen after Credit Suisse raised its rating on the stock to "outperform" from "neutral", citing easing concerns about its ability to secure parts supplies.
Volume was low, with only 670 million shares changing hands on the Tokyo stock exchange's main board. Full-day volume is set to be less than last week's average daily volume of 2.1 billion shares. (Editing by Chris Gallagher)