* Greece sends reform proposals to EU
* Euro bulls hopeful but not overly excited
* Extended bounce in China shares also improve risk appetite
* Fed Chair Yellen speaks later in the day (Adds details, quotes)
By Ian Chua and Shinichi Saoshiro
SYDNEY/TOKYO, July 10 (Reuters) - The euro firmed on Friday, while the safe-haven yen slipped as risk appetite warmed a touch on an extended rebound in Chinese shares and signs that Greece was making some progress in its efforts to secure fresh funding.
The common currency climbed 1.1 percent against the yen to 135.28 EURJPY=R and put on 0.5 percent to $1.1094 EUR= as Athens took a step forward by sending a package of reform proposals to its euro zone creditors. ID:nL8N0ZP12R
"Whether it needs to score 10/10, or 8/10 to be followed by more to-ing and fro-ing on Friday morning, remains to be seen," said Ray Attrill, global co-head of FX strategy at National Australia Bank.
Indeed, traders said the euro's inability to sustain levels above $1.11 was a clear signal that euro bulls were none too excited just yet. The common currency peaked at $1.11250 overnight.
Also helping risk sentiment were tentative signs that Chinese equities may have found a bottom for now after searing plunge since their June peak. Shanghai shares .SSEC rallied for the second straight day on Friday, shored up by emergency steps from the government to arrest the markets dive.
The safe-haven yen duly retreated, allowing the greenback to poke above 122 yen JPY= from a seven-week low of 120.410 set mid-week.
"True, the yen is on the defensive. But it still has a long way to go before it reaches the 124 handle, where it was before, reflecting the still-cautious mood in the market," said Shinichiro Kadota, chief Japan FX strategist at Barclays in Tokyo.
"The China situation is fundamentally larger in scale than Greece. We just might see Greece come to a sort of resolution this weekend. But on the other hand Chinese stocks are up only after drastic government measures, so it is not yet a full 'risk on' by all means."
Commodity currencies such as the Australian dollar held steady. The Aussie, often sold off in times of heightened risk aversion, stayed above 74 U.S. cents AUD=D4 and kept off a six-year trough of $0.7372 set mid-week.
Sterling drifted up 0.1 percent to $1.5397 GBP=D4 , from a one-month low of $1.5330. It was unmoved by the Bank of England's widely expected decision to keep its benchmark rate at a record low 0.5 percent. ID:nU8N0YA02G
In addition to China and Greece, a speech by Federal Reserve Chair Janet Yellen on the U.S. economic outlook - due at 1630 GMT - will be a key focal point of the day.
Traders said any resolution to Greece's debt crisis will help remove a key uncertainty blighting the global picture and perhaps give the Fed added confidence to start lifting interest rates later in the year.
Kansas City Fed Bank President Esther George said on Thursday the U.S. central bank may stumble into a "trap" if it continued waiting for more data to justify an initial interest rate increase, risking a quick takeoff of inflation or other problems. ID:nW1N0YP00Y
(Editing by Richard Borsuk & Shri Navaratnam)