* Yen slides against higher-yielding Aussie, NZ dollars By Wanfeng Zhou NEW YORK, April 11 (Reuters) - The dollar fell from a four-year high against the yen on Thursday but still looked bound to strengthen above the 100 level in the near term as traders bet the Bank of Japan's aggressive monetary easing will trigger further yen weakness. The euro climbed to a six-week high versus the dollar as Italy's three-year debt costs fell to their lowest since January at an auction. The euro also hit a more than three-year high against the yen before surrendering all gains. The dollar was last down 0.5 percent at 99.30 yen, having risen as high as 99.87 yen on Wednesday, the strongest level since April 2009. Traders said substantial options expiries due later in the day between 98 and 99.50 yen could keep the dollar under pressure. "The break through 100 was never expected to be an easy battle but when the barrier is clear, there could be a surge upwards," said Kathy Lien, managing director at BK Asset Management in New York. Technical resistance lies at 99.73 yen, the 50 percent retracement of the dollar's drop from its June 2007 high of 124.14 yen to a record low of 75.311 yen set in October 2011. Traders cited hefty offers to sell dollars at 100 yen from Japanese exporters. However, they added most investors were looking to use dips to add to long dollar positions. A rise above 100 yen would open the door for a test of the April 2009 peak of 101.45 yen. Ulrich Leuchtmann, head of currency research at Commerzbank, said it was possible that the dollar could rise to 115 yen or higher by the end of the year, but said it was difficult to predict the extent of the move. "The 100 yen level is a psychological level that might take a bit of time to break, but this is still a very significant qualitative change by the Bank of Japan that is not fully priced in yet," said Ulrich Leuchtmann, head of currency research at Commerzbank. Japan's aggressive monetary easing contrasts with expectations the Federal Reserve may slow its bond-buying later this year. These expectations were given a boost as Fed minutes on Wednesday showed a few policymakers looking to taper asset purchases by mid-year. However, analysts said investors may reassess this as the minutes did not reflect a dismal March payrolls report which was released after the meeting. Data on Thursday eased some fears about the U.S. labor market as the number of Americans filing new claims for unemployment benefits fell more than expected last week. The euro rose to its highest in more than three years against the yen at 130.82 yen on Reuters data, and was last down 0.4 percent at 129.89 yen. Against the dollar, the euro rose 0.2 percent to $1.3097, after a session peak of $1.3138, the highest since the end of February. Speculation was growing that the BOJ's ultra-loose policy would drive Japanese investors to riskier and higher-yielding foreign assets, with the euro one of the beneficiaries. So far, there was little evidence of that happening, however. Data from Japan's Ministry of Finance showed Japanese investors sold a net 1.145 trillion yen ($11.5 billion) worth of foreign bonds last week, the highest sales in a year. "The euro should stay strong. Peripheral bond yields are falling, bank shares are up and peripheral equity markets are leading the rebound in EMU shares," Morgan Stanley analysts said in a note to clients. "We maintain our bullish euro/dollar position with important pivotal points at $1.3135/1.3150 now set to be tested. A move above here would open the way for a rebound towards $1.33/1.34." The yen suffered particularly against higher-yielding currencies like the Australian and New Zealand dollars. The Australian dollar rose to a five-and-a-half year high of 105.39 yen while the New Zealand dollar hit 86.43 yen , its strongest since early 2008.

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