* Key event risk is BOJ meeting, decision expected 0330-0430 GMT
* BOJ under pressure to ease, but seen unlikely to do so now
* Dollar still struggling after payrolls disappointment
By Ian Chua
SYDNEY, Oct 7 (Reuters) - The yen nursed losses against most of its peers early on Wednesday and is likely to stay on the defensive in case the Bank of Japan surprises by injecting fresh stimulus after its policy review later in the day.
There is some speculation that Governor Haruhiko Kuroda could ease, rather than wait for a more crucial meeting on Oct. 30, when the central bank is expected to cut its long-term economic and price forecasts.
Last year, the BOJ shocked markets by expanding its massive stimulus spending at the Oct 31 meeting and sent the yen tumbling.
In any case, analysts said a pick-up in volatility is likely given the risk of a move. "Despite speculation that further easing is on the way, the market is leaning towards a 'wait-and-see' type of statement from Governor Kuroda," analysts at CitiFX wrote in a note to clients.
The yen slipped on the euro and hit multi-week lows against the Australian, New Zealand and Canadian dollars. But it managed to hold its ground on the U.S. currency, which continued to struggle after last Friday's disappointing payrolls report.
With U.S. jobs growth slowing, there is increasing doubt the Federal Reserve can afford to hike interest rates this year.
The euro fetched 134.460 yen EURJPY=R , having climbed 0.5 percent on Tuesday. The Canadian and New Zealand dollars touched highs of 92.33 yen CADJPY=R and 78.81 yen respectively, scaling peaks not seen since late August.
The Australian dollar rose to its highest in over two weeks at 86.26 yen, and also hit a near three-week high of $0.7176.
Aussie bears beat a hasty retreat after the Reserve Bank of Australia on Tuesday disappointed by offering a neutral statement despite growing market worries about a hard landing in China, Australia's biggest export market.
The dollar underperformed its peers, edging down to 120.245 yen JPY= , from a high of 120.575. The euro firmed to $1.1267 EUR= , knocking the dollar index .DXY back down to 95.468, near the post-payrolls trough of 95.218.
There is little else in the way of market-moving data out of Asia on Wednesday, leaving the focus squarely on the BOJ.