* Yen hits fresh 15-year high, knocks stocks from 3-week peak
* Market awaits ruling party leadership vote, seen close
* Ozawa win seen positive but doubts would remain long term
* Short-term buy signal aided benchmark but resistance looms
By Aiko Hayashi
TOKYO, Sept 14 (Reuters) - Japan's Nikkei fell 0.6 percent on Tuesday after the yen hit a fresh 15-year high, knocking the stock benchmark from a three-week closing high logged the day before, while investors awaited a ruling party leadership vote in the afternoon.
Market players are closely following the Democratic Party of Japan's leadership race, in which powerbroker Ichiro Ozawa is challenging Prime Minister Naoto Kan, as the result may reset the country's fiscal priorities.
A short-term buying signal emerged for the benchmark after its 5-day moving average pierced above its 25-day moving average, forming a "Golden Cross" that can often indicate further rises.
But market players see solid resistance looming at 9,500, roughly around its 75-day moving average as well as the bottom of the Nikkei's Ichimoku cloud. Ichimoku charts are popular with Japanese traders.
"Generally speaking, the Nikkei is poised for more gains, with its 5-day and 25-day moving averages having formed a 'Golden Cross', but investor caution before the vote result weighed. The index has also already gained three days in a row," said Koichi Nosaka, a market analyst at Securities Japan, Inc.
Market players said there was a reluctance to take positions actively before the Democratic Party vote result is known, probably after the market close.
CLOSE CALL
Ozawa has vowed to act to curb the yen, including solo intervention in currency markets, as the currency's rise to 15-year highs is threatening Japan's economic recovery. Kan's team has repeatedly expressed its concern about the yen's climb, but so far has refrained from stepping into the market.
"The result is expected to be a close call. While opinion polls have favoured Kan, the stock market overwhelmingly would want to see Ozawa win because he is seen to be a more aggressive leader, including his view on currencies," said Kenichi Hirano, operating officer at Tachibana Securities.
Nosaka said that, while an Ozawa victory would likely be positive for the stock market in the short term due to his willingness to spend more to shore up the economy, uncertainty remained in the longer term given the possible impact of such policies on the country's finances
The benchmark Nikkei fell 54.34 points to 9,267.48. It rose 0.9 percent on Monday to its highest close since Aug. 19.
If the Nikkei resumes rising, its next target lies at 9,460, around its 75-day moving average, and at the bottom of the Ichimoku cloud, which stands around 9,530.
The broader Topix inched down 0.2 percent to 835.76.
The dollar fell to a new 15-year low versus the yen in early trade, pressured by a fall in U.S. bond yields as well as selling in cross/yen pairs such as Aussie/yen.
There is also speculation that Kan may beat Ozawa in the leadership vote later in the day, which is prompting those who went long on the dollar to dump their positions, a Japanese bank trader said.
The dollar fell as low as 83.25 yen.
Shares of exporters fell, with Advantest Corp slipping 1.5 percent to 1,632 yen and Toyota Motor Corp falling 1.3 percent to 2,909 yen. (Editing by Edmund Klamann)