* Euro expected to stay pressured by fragile periphery
* Technical analysts looking for daily close under $1.3690
* G20 meeting unlikely to break new ground on imbalances
(Changes dateline, releads, adds quote, previous TOKYO)
By Neal Armstrong
LONDON, Nov 11 (Reuters) - The euro dipped on Thursday after skidding to a five-week low the previous day, with tensions in the euro zone periphery expected to trigger further selling and a potential retest of key technical support.
The dollar lost steam after four days of gains but remained close to significant barriers which, if broken, could see its short-covering rebound stretch higher against the likes of the yen and euro.
"There are mounting tensions in the euro zone, with Portugal's bond auction yesterday showing yields are on a strong rise," said Lutz Karpowitz, currency analyst at Commerzbank.
"This, together with problems in Ireland, is putting pressure on the euro and I would expect further downward movement from here," he said.
Ireland is battling to prove it does not need a Greek-style rescue to help it reduce the worst budget deficit in Europe. The Irish central bank governor said on Wednesday a huge bank recapitalisation programme had failed to reassure investors.
Portugal's final debt issue this year drew solid demand on Wednesday but at a high price as the euro zone peripheral states remained under pressure. [ID:nLDE6A90IZ]
The euro traded at $1.3734 versus the dollar EUR=, down 0.4 percent, holding above a five-week low of $1.3670 hit on Wednesday.
Traders said a Dutch name was a notable seller in early European dealing, with a major Asian sovereign account also keen to sell euros, but Middle East demand was underpinning the single currency.
Technical analysts said a daily close below the October low at $1.3690 would be needed for the euro to make a further significant move lower.
In Seoul, Group of 20 leaders gathered to discuss currencies and global economic imbalances. But negotiators wrangled over the wording of a communique expected on Friday, and the statement was not expected to venture much beyond a finance ministers' agreement last month. [ID:nN10121378]
"The U.S. no longer appears to have the clout to push through its agenda. The G20 is unlikely to adopt targets on current account imbalances," said Etsuko Yamashita, chief economist at Sumitomo Mitsui Banking Corp.
G20 Take a Look: [ID:nN09105095]
G20 battle lines: r.reuters.com/jux34q
Basel III:reshaping the rules: r.reuters.com/zys68p
The Fed's big gamble: r.reuters.com/cyh73q
After China stimulus package: r.reuters.com/puj74q
Former U.S. Federal Reserve Chairman Alan Greenspan said in the Financial Times that the United States was pursuing a policy of weakening the dollar but Treasury Secretary Timothy Geithner shot back, telling CNBC Washington would "never do that".
The dollar index .DXY, which measures the greenback against a basket of currencies, was up 0.1 percent at 77.74.
After rising almost to its September pre-intervention low of 82.87 yen on Wednesday, the dollar was holding above 82.00 yen JPY=. Even if 82.87 were to break, traders said option barriers at 83.00 would hamper further dollar gains.
UBS analysts said in a note that long-yen speculative positioning remained high, increasing the risk of position unwinding into the year end, while a rise in U.S.-Japan bond yield differentials could also help.
The Veteran's Day holiday in the United States, where some markets will be shut, was helping keep the market subdued.
The Australian dollar AUD=D4 traded at $1.0015 after briefly dipping below parity earlier in the session as data showed Australia's jobless rate jumped -- a trend that could lessen the need for higher interest rates.
(Additional reporting by Charlotte Cooper)