Yen edges up vs dollar, euro on safety buying

* Yen rebounds as investors tiptoe back after sharp fall

* Rally in Tokyo shares fails to dent the yen

* Market eyeing weekend G20 meeting for direction

TOKYO, Nov 14 - The yen edged up against the dollar and the euro on Friday after a sharp fall the previous day, as investors tiptoed back to the perceived safety of the Japanese currency amid nagging concerns about the global credit crisis.

A rally on Wall Street the day before eased risk aversion and triggered a steep drop in the yen against the dollar and euro, but currency market participants failed to find other reasons to move beyond short-covering, traders said.

"In the overall market tone, the anxiety of the financial market turmoil has not disappeared. So market demand for the dollar and the yen driven by flight-to-safety will likely remain," said Yousuke Hosokawa, senior manager at Chuo Mitsui Trust and Banking.

"The market just can't brush away its worries about issues such as how large the losses by U.S. financial corporations will be and whether the $700 billion U.S bailout plan will suffice," he said.

Due to such concerns, a rally in Tokyo shares on Friday failed to dent the yen as it did not fully ease wariness towards risk, traders said.

The Nikkei stock average climbed 3.7 percent following the jump in U.S. stocks.

Market players are eyeing a meeting of leaders from the Group of 20 developed and emerging nations this weekend in Washington, to see whether the outcome will alter the currency market's direction.

The dollar fell 0.6 percent to 97.11 yen.

The euro dipped 0.8 percent to 123.85 yen on trading platform EBS after rising as high as 125.72 in early trade.

The single European currency edged down 0.2 percent to $1.2750.