* Market waits to see if Japan will intervene again * Dollar/yen off peak, but well above pre-intervention level * Renewed debt worries weigh on euro * Aussie drops on RBA rate cut, drop in equities (Updates levels, adds RBA decision) By Masayuki Kitano SINGAPORE, Nov 1 (Reuters) - The dollar dipped versus the yen on Tuesday, having pulled back from a three-month high as the impact of Japan's massive intervention faded a touch, while growing doubts over a plan to contain Europe's debt crisis weighed on the euro. The Australian dollar fell after country's central bank cut interest rates by 25 basis points to 4.5 percent, with interest rate futures suggesting investors were bracing for further easing. Trading in dollar/yen remained relatively choppy after Japan's yen-selling intervention on Monday, which major Japanese daily the Asahi newspaper said reached a record 10 trillion yen ($128 billion). That was broadly in line with estimates among some market players of between $90 billion to $130 billion, and would exceed the roughly $59 billion in yen-selling intervention that Japan conducted during its previous intervention in August. Steve Barrow, strategist at Standard Bank, said if the intervention was not repeated, just as the case back in August, then dollar/yen could quickly return to the 75 region. "We feel that the BOJ needs to vary the tactics here and would be better served by intervening intermittently in order to hang on to the gains it has made so far," he said. "Even this tactic would not stop dollar/yen falling to our target of 70, but at least it might mean that this is a long-term possibility rather than a near-term probability." Earlier, the dollar briefly surged around 60 pips or so to an intraday high of 79.10 yen but then quickly gave back its gains, and traders said the rise was unlikely to have been caused by intervention. The dollar dipped 0.1 percent to 78.12 yen , having backed off a three-month high of 79.55 yen hit on Monday but well above levels seen before intervention of around 75.65 yen or so. Japan's previous intervention in August, as well as the joint yen-selling intervention it conducted with other Group of Seven nations in March, were both one-day actions, and it is unclear whether Japan is ready to intervene more frequently this time around. "I don't think the chances of a drastic change are very high," said Junya Tanase, chief FX strategist for J.P.Morgan in Tokyo. Japan may have a hard time gaining international understanding toward efforts to weaken the yen at a time when European and U.S. economies are facing difficulties as well, Tanase said, adding that the dollar was likely to trade roughly between 75 yen to 80 yen for the rest of the year. EURO OFF RECENT PEAK Market players are also sceptical that Japan will adopt a Swiss-style floor for dollar/yen. Ray Farris, head of foreign exchange strategy for Credit Suisse, said the idea of establishing a floor for dollar/yen was unlikely to be endorsed by the G20 or the G10. "I tend to think this is about slowing down the move rather than establishing a hard floor," Farris said about Monday's intervention. Japanese authorities were probably trying to help Japanese exporters, especially after their supply chain was affected by recent floods in Thailand, he added. "We continue to think that over the next several months, dollar/yen is more likely to trade lower than simply stay here or go higher," Farris said, adding that Credit Suisse's forecast is for dollar/yen to trade down to 75 yen over the next two to three months. One of the reasons supporting underlying demand for the yen is that it is the least unattractive among the G3 currencies. Indeed, despite last Thursday's euro zone summit deal, doubts about how those measures could be implemented continued to haunt the common currency. News that the Greek prime minister has called an unexpected referendum on a new EU bailout deal for his debt-ridden country coupled with persistent pressure on Italian bonds renewed worries about the region. The euro dipped 0.4 percent to $1.3806 , pulling further away from a peak of $1.4248 hit last week after the debt deal was announced. The Australian dollar fell 1 percent to $1.0441 , retreating after the Reserve Bank of Australia's rate cut, with weakness in Asian equities and U.S. stock index futures SPc1 adding to pressure against the growth-leveraged Aussie dollar. (Additional reporting by Ian Chua in Sydney and Antoni Slodkowski in Tokyo; Editing by Ramya Venugopal)

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