FOREX-Yen gains, dollar supported as risk appetite retreats

* Yen gains, dollar supported as risk appetite decreases

* Euro down 1 pct vs yen as regional shares fall

* Optimism about U.S. monetary, fiscal measures fades


By Naomi Tajitsu and Phakamisa Ndzamela

LONDON, Jan 29 (Reuters) - The yen gained broadly and the dollar was supported on Thursday as struggling share prices kept risk aversion intact, despite the latest U.S. monetary and fiscal stimulus measures.

The euro retreated from gains made earlier in the week as the single currency was weighed by a 1.3 percent fall in European shares .FTEU3. Stocks snapped a three-day winning streak, dragged down by weak bank shares.

"The optimism that has been seen developing over the course of the past week is now starting to fade," said Ian Stannard, senior foreign exchange strategist at BNP Paribas in London.

http://www.reuters.com/article/usDollarRpt/idUSLT58370720090129