* Yen near week's lows with risk appetite positive
* Apple Inc earnings boost risk sentiment
* Canada dollar at 22-mth high vs US dollar on rate outlook
* Euro steady as Athens talks with EU/IMF begin
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By Neal Armstrong
LONDON, April 21 (Reuters) - The yen hovered near the week's lows on Wednesday as strong U.S. earnings and gains in global equities fed a rebound in risk appetite, while the Canadian dollar climbed to its highest level in nearly two years.
Apple Inc <AAPL.O> posted earnings on Tuesday that far exceeded expectations, sending its shares up more than 5 percent to an all-time high, following strong results from Goldman Sachs <GS.N>.
"The U.S. earnings have provided a more friendly environment for the 'risk-on' trades," said Audrey Childe-Freeman, currency strategist at Brown Brothers Harriman.
A positive outlook for risk kept the low yielding Japanese yen on the back foot, with real-money accounts said to be keen to buy yen crosses on dips.
At 0940 GMT the dollar was trading up around 0.1 percent versus the yen <JPY=> at 93.35 yen. The euro traded up around 0.1 percent against the yen <EURJPY=R> at 125.45 yen. It rose as high as 125.64 yen the previous day.
The Canadian dollar <CADJPY=R> traded with gains of around 0.4 percent at 93.80 yen.
The Canadian currency has risen about 11 percent against the yen since starting to rally in late February.
It strengthened broadly on Tuesday after the Bank of Canada signalled an interest rate rise may come as early as June.
Early European trade on Wednesday pushed it to a 22-month high of 0.9931 versus the U.S. dollar <CAD=D4>.
"The Canadian dollar is rallying after the BoC dropped its conditional commitment not to move on rates. It's also benefiting from positive risk appetite," said Adam Cole, global head of FX strategy at RBC Capital Markets.
"We have a near-term target versus the U.S. dollar of C$0.9800 and expect that to be reached pretty quickly," he said.
The euro hovered close to a two-week low after Greek borrowing costs hit a 12-year high on Tuesday as Athens prepared to launch talks on a European union/International Monetary Fund bailout package aimed at rescuing Greece from a debt crisis.
Ten days of talks begin on Wednesday on the belt-tightening measures Greece must take until 2012, the European Commission said, paving the way for the swift payout of up to 30 billion euros of euro zone emergency aid if Athens asks for it. [ID:nLDE63J18U]
The euro <EUR=> was trading flat on the day at $1.3430 after dropping to its lowest level since April 8 in Asia at $1.3399. But further losses were limited by option-related demand.
Traders said a Swiss bank was attempting to get the rate above $1.3450 for the 1400GMT cut for an options trade to be in the money.
Traders also reported good demand on order boards from $1.3380, placed ahead of a reported $1.3350 option barrier being defended by an Asian sovereign account. (Editing by Ian Jones)