LONDONTOKYO, Jan 24 Reuters The yen rose on Wednesday as Japanese bond yields climbed sharply on hopes that ultraloose monetary policy will soon end, while the dollar fell as the euro and pound advanced.

The dollar was last down 0.66 against the yen at 147.39. The yen tracked Japanese government bond yields , which leapt to sixweek highs after Bank of Japan chief Kazuo Ueda said on Tuesday that the prospects of achieving the central bank39;s inflation target were gradually increasing.

Strong Japanese export data on Wednesday added to the positive mood around the yen, as did a dip in U.S. bond yields as investors tried to gauge the likely path of Federal Reserve interest rates.

Ueda39;s comments have given the market a little more confidence that April is definitely a live date for a potential exit from the current policy, said Ray Attrill, head of FX research at National Australia Bank.

The euro was last up 0.4 at 1.0896 after falling 0.27 on Tuesday.

It rose slightly after purchasing managers39; index surveys showed that the euro zone economy39;s downturn eased somewhat in January although it remained sluggish. The euro slipped to its lowest against the pound since early September at 85.4 pence.

The dollar index was down 0.42 at 103.08, reversing the previous two days39; 0.26 increase.

It touched its highest since Dec. 13 at 103.82 on Tuesday and is up just under 2 this year as strongerthanexpected data and pushback from central bankers has caused the market to…