Yen rises amid Japanese stock volatility THE yen has gained against the euro and the US dollar as heavy volatility in the Japanese equity market reverberated through the currency market. Near 2200 GMT (0800 AEST Saturday), the euro bought 130.82 yen, down from 131.72 yen. The US dollar traded at 101.14 yen, down from 101.82 the prior day. The euro was essentially flat against the dollar, trading at $US1.2936 ($A1.33) compared with $US1.2935. Analysts noted that Japanese officials were concerned by Thursday's seven per cent plunge in the Japanese Nikkei 225 equity Index. The dramatic drop in the Nikkei was accompanied by a rise in the yen, attributed to profit taking after recent weakness in the currency. The Nikkei closed on Friday 0.9 per cent higher at 14,612.45, but not before veering more than 1000 points between the highs and lows during another volatile session. "These crazy moves in stocks have triggered a tremendous anxiety in Japan that has caused wild swings for the yen," said Kathy Lien of BK Asset Management. The yen's recent surge may lead investors to wonder "if this pullback will become a deeper reversal," Lien said. The gains follow the currency's steep decline in recent weeks amid the Japanese government's aggressive stimulus measures. David Song, currency analyst at DailyFX, said the yen's strength may gain momentum "in the weekdays ahead should we see a growing number of Bank of Japan officials strike a more neutral tone for monetary policy" given the improving Japanese economy. At the same time, Song said, the Bank of Japan "may have little choice but to further embark on its easing cycle as there remains a 'high degree of uncertainty' surrounding the fundamental outlook." Among other currencies, the British pound bought $US1.5126 on Friday, up from $US1.5107 late Thursday. The dollar retreated against the Swiss franc, trading at 0.9614 compared with 0.9680.