* Dollar index firm after Monday's 0.4% gain
* Beijing, Washington say willing to resolve trade dispute
* Fed easing outlook keeps tab on dollar
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Adds yen, yuan fixing)
By Hideyuki Sano and Stanley White
TOKYO, Aug 27 (Reuters) - The yen rose on Tuesday as some investors tempered their optimism about the chances for a quick resolution to the U.S.-China trade war, which boosted so-called risk-off trades.
Global markets have been whipsawed by dramatic twists in the trade dispute this month. U.S. President Donald Trump on Monday flagged the possibility of a trade deal with China, days after both sides announced new tariffs.
The dollar came under additional pressure versus the yen as a decline in U.S. Treasury yields showed some investors still favoured the safety of government debt.
The currency market also took some relief from a stronger-than-expected daily yuan fixing by the People's Bank of China, which many traders considered an attempt to slow the yuan's decline versus the dollar.
While Washington and Beijing have shown a willingness to return to the negotiating table to resolve their trade row, there are lingering concerns about a lack of a clear path towards resolving a dispute that has dragged on for more than a year and hurt global growth, corporate profits and investments.
"The dollar rallied overnight due to optimism about a trade deal, but there's a sense that the market has gotten a little ahead of itself," said Junichi Ishikawa, senior foreign exchange strategist at IG Securities.
"Some traders can book a little profit here. There are still so many issues that can trigger a clash between the United States and China. Treasuries shows the market is still somewhat sceptical."
The yen rose around 0.4% in Asian trading to 105.73 per dollar.
The yen, which tends to be bought in times of economic uncertainty, also rose around 0.4% versus the Australian and New Zealand dollars.
The dollar index measuring the greenback against a basket of six major currencies fell 0.06% to 97.960.
Benchmark 10-year U.S. Treasury yields fell to 1.5232% in Asia. The yield curve was inverted as 2-year yields traded at 1.5267%, which is commonly considered a sign of an impending economic recession.
On Monday the greenback rebounded from near eight- month lows of 104.46 yen after some signs of rapprochement between Washington and Beijing soothed investors' nerves.
Speaking on the sidelines of the G7 summit of world leaders in France on Monday, U.S. President Donald Trump said Chinese officials had contacted U.S. trade counterparts overnight and offered to return to the negotiating table.