* Dollar/yen pulls up from Tuesday's 1-month low

* Euro subdued on European bank worries, ECB's Draghi to speak

* Dollar upside capped, Fed not expected to move until year end

(Updates, adds comments, details)

By Anirban Nag

LONDON, Sept 28 (Reuters) - The dollar rose against the yen and a basket of currencies on Wednesday, with focus shifting to the Federal Reserve chair Janet Yellen's testimony later in the day.

Yellen will give her semi-annual testimony before a Congressional committee, and while it is set to be focused on financial regulation, traders said she is likely to asked questions about the Fed's outlook on rates and the economy.

Cleveland Fed President Mester and Kansas City Fed President George are also due to speak on the economy and monetary policy at separate events. Both are seen as hawks by the market after they dissented at the last meeting and voted to raise rates.

The dollar index was up 0.2 percent at 95.648 , and regained ground against the yen. It was up 0.2 percent at 100.60 after setting a one-month low of 100.085 yen on Tuesday.

The euro was down 0.2 percent at $1.1190 , having come under pressure in the past session on concerns over the health of the European financial system. The euro had retreated on Tuesday as share prices in Deutsche Bank, Germany's largest lender, fell to a record low on concerns about a $14 billion demand from the U.S. Department of Justice.

"While we admit that near-term downside risks to the euro have increased due to financial stability concerns we think that any setback into the $1.11 handle offers a buying opportunity," Hans Redeker, head of currency strategy at Morgan Stanley said.

European Central Bank chief Mario Draghi is also due to speak twice on Wednesday. He will address the ECB's first annual research conference in the morning before heading to Berlin to speak in front of the German Parliament later in the day.



FEDWATCH

With investors trimming the possibility of a December hike, traders said upside for the dollar was limited. Money market futures price in a less than 50 percent chance of a rate increase by December, compared to over 60 percent after the Fed's policy meeting last week.

Relatively hawkish comments from Fed Vice Chairman Stanley Fischer on Tuesday did little to alter expectations. Fischer cited better labour market conditions but added that the Fed should avoid raising rates too much, a comment that helped to push down 10-year U.S. bond yields to a three-week low.

Shinichiro Kadota, chief FX strategist at Barclays in Tokyo, said the dollar looks likely to be supported above 100 yen for now, but added he did not see rapid gains.

"Even after some strong U.S. economic data, the dollar couldn't gain much yesterday, which seems to suggest the dollar has limited upside for now," Kadota said.

(Additional reporting by Masayuki Kitano; Editing by Andrew Heavens) ((anirban.nag@thomsonreuters.com; +44 20 7542 8399; Reuters Messaging: anirban.nag.thomsonreuters.com@reuters.net))