* Greek fiscal woes hurt euro after S&P comments * Yen up, hits 1-yr high vs euro of 120.25 yen EURJPY=R * Euro downside vs dlr supported by Asian central bank buys * Analysts eye further yen strength into Japan fiscal yr-end (Releads, adds details, updates prices) By Neal Armstrong LONDON, Feb 25 (Reuters) - The euro hit a one-year low against the yen on Thursday as investors sold the single currency on concerns about Greece's fiscal position, prompting safe-haven flows into the low-yielding Japanese currency. Worries about a possible downgrade to Greece's sovereign debt were seen as the trigger, after ratings agency Standard and Poor's said late on Wednesday it may cut Greece's BBB+ rating by one or two notches within a month. [ID:nLDE61N2KL] Rival firm Moody's Investors Service told Reuters on Thursday any changes in its ratings on Greece would depend on whether Athens delivered on its fiscal reform plans [ID:nTOE61O07J]. Fitch Ratings said it expected to keep Greece's BBB+ rating unchanged for the next few months barring surprises. [ID:nLAG006125] The spread between Greek and German 10-year government bonds widened, and the cost of insuring Greek debt against default also rose [ID:nLDE61O127]. The low-yielding yen was the main beneficiary in currency markets, gaining sharply in Asian trade which carried over into Europe. "The yen is in favour against the euro on safe-haven demand, fuelled by risk-aversion on concerns over sovereign debt risks of the peripheral euro zone members. A possible Greek ratings downgrade has added further pressure," said Lee Hardman, currency strategist at Bank of Tokyo-Mitsubishi UFJ. By 1208 GMT, the euro was down around 1.2 percent at 120.54 yen after falling to 120.25 yen, its lowest since February last year. Traders said large option barriers positioned at 120.00 yen could curb the yen's strength, and significant stop-loss orders lurked below. Against the dollar, the euro stood at $1.3492, down 0.3 percent on the day, after falling near a nine-month low of $1.3445 hit on Friday. Its recovery was helped by buying from Asian central banks, traders said. Concerns over Greece and other peripheral euro zone countries' ability to pay their debts have driven the euro down more than 10 percent from its December highs. YEN GAINS Higher-yielding currencies such as the Australian and New Zealand dollars also came under heavy pressure versus the yen as traders said Japanese margin accounts were forced into stop-loss driven selling. The Australian dollar fell more than one percent to 79.50 yen, after dropping to 79.17 yen. Technical traders noted it had broken below its 200-day moving average at 79.78 yen. Sterling tumbled to a nine-month low against the yen as worries over the UK economy weighed on the pound. The yen also gained around 1 percent against the dollar JPY=, though technical traders noted strong support around the day's lows of 89.22 yen from the base of the "Ichimoku cloud." Japanese bids were noted supporting under 89.30 yen. "The yen does tend to strengthen when times get tough and I would also say it is likely to remain in favour going into the Japanese fiscal year-end", said HSBC director of currency strategy Paul Mackel. BTM-UFJ's Hardman agreed, noting Japanese corporates traditionally repatriated overseas' revenues back to their domestic currency ahead of the financial year close on March 31. The dollar was little changed on the day at 80.978 .DXY. It fell on Wednesday after U.S. Federal Reserve Chairman Ben Bernanke said a weak jobs market and low inflation would likely allow the Fed to keep rates low for "an extended period." That poured cold water on market expectations that U.S. interest rates would rise sooner rather than later -- a view boosted after the Fed raised its discount rate last week. Bernanke continues his testimony on the Fed's semi-annual report on Thursday, this time to the Senate Banking Committee. (Additional reporting by Tamawa Desai; Editing by Susan Fenton)

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