* Yen slips vs dollar, off this week's 1-mth high
* BOJ seen likely to stand pat in Tuesday's policy decision
* Some focus on Japan investment trust launch on Tuesday
By Masayuki Kitano
TOKYO, Jan 26 (Reuters) - The yen held broadly steady on Tuesday, hovering below a nine-month peak struck against the euro last week and taking a breather from a rally triggered by the onset of risk reduction.
The yen surged last week as investors dumped higher-yielding currencies and risky assets on concerns that China's efforts to curb its surging economy could impair global growth and worries over a White House plan to curb risk-taking among banks.
Investors have taken a pause from such risk-reduction so far this week, with U.S. stocks snapping a three-day slide on Monday, and strong demand at a sale of Greek five-year debt allaying some concerns over Greece's fiscal problems. [ID:nLDE60O1XR]
The outlook remains uncertain, however, said a trader for a major Japanese bank.
The U.S. proposals for financial regulation have been the biggest factor and there is a lot that remains unclear. In that sense, moves toward risk aversion could persist, the trader said.
The dollar edged up 0.1 percent against the yen to 90.39 yen, up from a one-month low of 89.71 yen hit on trading platform EBS on Monday.
The euro rose 0.2 percent against the yen to 128.02 yen EURJPY=R, having pulled up from a nine-month low of 126.55 yen struck on trading platform EBS last week.
The euro held steady against the dollar at $1.4157, up from a six-month low of $1.4029 hit last week.
Market players said the yen would take its cue from the Bank of Japan's policy decision due later on Tuesday.
The BOJ is seen likely to keep interest rates at 0.1 percent and to hold off on new initiatives at its meeting, having introduced a new funding operation last month after a period of intense government pressure for action to support the fragile economy. [ID:nTOE60K08J]
If the BOJ keeps monetary policy unchanged and just points to the possibility of further easing in the future, the impact on the yen is likely to be limited, said the trader for a major Japanese bank.
But the yen could weaken if the BOJ surprises the market by unveiling any additional monetary easing measures, market players said.
Another factor that may impact the yen is the planned launch of Japanese investment trusts, known as toushin, targeting overseas assets.
J.P. Morgan Asset Management is due to launch an investment trust on Tuesday that will invest in global railroad-related equities.
Such mutual funds targeting overseas assets can generate yen-selling flows and pressure the yen if retail demand turns out to be strong.
Australian markets are closed on Tuesday for a holiday. (Editing by Michael Watson)