Singapore, February 11 (Reuters) - The yen held onto its strong gains on Wednesday, supported by a rally in the Japanese stock market and bets that Prime Minister Sanae Takaichi's landslide election victory puts her in a strong position regarding fiscal policy.

The dollar fluctuated ahead of the important U.S. non-farm payrolls report later on Wednesday, after a series of overnight data pointed to a slowdown in the world's largest economy.

The yen rose 0.1 percent to 154.22 per dollar, benefiting from a 1 percent gain in the previous session, which also saw it rise against other currencies.

Trading volumes in Asia declined as Japanese markets were closed for a holiday.

"Such a resounding victory gives the Takaichi regime better control over the downsides of Japanese government bonds and the yen," said Vishnu Varathaan, head of macro research for Asia at Mizuho.

He went on to say, "She could pursue a more coherent fiscal policy... She certainly has a numerically logical plan, so there should be no doubt about that. What she needed was the political capital to implement it, without having to make multiple concessions to the many parties who want more (of stimulus)."

The yen and Japanese government bonds rose in the wake of Takaichi's landslide victory, and investors flocked to Japanese stocks in anticipation of stimulus reaching Japanese consumers and businesses.

Foreign inflows into Japanese stocks are driving up demand for the yen.

US jobs data was the focus of investors' attention on Wednesday, with non-farm payrolls expected to have risen by 70,000 in January. The unemployment rate is expected to remain steady at 4.4 percent.

Before the data was released, the euro rose 0.04 percent to $1.1899, while the pound sterling edged up slightly to $1.3646.

The dollar index, which measures the performance of the US currency against a basket of currencies, fell by 0.12 percent to 96.80 points.