Japanese Finance Minister Yoshihiko Noda signalled on Tuesday that Tokyo is in close touch with European and U.S. counterparts on the yen's strength, but declined to say if it would sell the yen to rein in its surge in value.

Noda also kept up his warnings to markets against pushing up the yen too much, saying it is currently "too high" and that recent exchange-rate moves were one-sided.

"If the yen strength continues, it will undoubtedly impact some industries. I want to closely analyse the potential impact," Noda told reporters after a cabinet meeting.

"I am in contact with many different people about this matter," he said, when asked if Japan was discussing the yen's strength with U.S. and European authorities.

He declined to comment on a Nikkei newspaper report that Washington would approve of yen-selling intervention by Tokyo.

The yen's overnight ascent near record highs against the dollar has heightened the possibility of Japanese currency intervention to weaken the yen, and for the central bank to follow suit with additional monetary easing.

The dollar fell to 76.29 yen on Monday, the lowest since joint intervention in mid-March and near its record low of 76.25 yen hit after the March 11 earthquake. On Tuesday morning it was around 77.20 yen .

The Nikkei newspaper said on Tuesday, without citing sources, that the Japanese government was preparing to intervene in currency markets if necessary to weaken the yen as it nears a record high against the dollar. The report also said the Bank of Japan has begun discussing additional monetary easing. . (Additional reporting by Leika Kihara; Editing by Edmund Klamann)