TOKYO (AP) _ The U.S. dollar edged higher today against the Japanese yen while prices recovered slightly in thin volume on the Tokyo Stock Exchange.

The dollar closed at 129.32 yen, up 0.06 yen from Monday's close and also higher than its overnight finish at 129.20 yen in New York.

After opening at 129.08 yen, the day's low, it moved as high as 129.40 yen. Spot trading totaled $4.23 billion, down from Monday's $6.31 billion.

''The dollar is firming despite continuing worries over central bank intervention,'' said Masaru Furusawa, a dealer with Fuji Bank.

Furusawa said support for the yen was eroded by parliamentary testimony from two former high-ranking politicians over their alleged involvement in a bribery scandal. But trading quieted down in the afternoon.

''There was some psychological pressure before the testimony, but it turned out to be nothing special that would affect the stock market,'' said Masaru Yamano, a trader with Taiheyyo Securities.

The 225-issue Nikkei Stock Average gained 52.31 points, or 0.25 percent, closing at 21,025.55. On Monday, the average shed 318.57 points, or 1.50 percent.

The Tokyo Stock Price Index of all issues listed on the first section, which fell 14.84 points Monday, lost another 0.85 points to 1,535.87.

An estimated 160 million shares changed hands, up slightly from Monday's 156 million shares. Despite the Nikkei's gain, declining issues outnumbered advances 507 to 370, with 210 unchanged.

The benchmark No. 129 10-year Japanese government bonds closed at 105.65 points, down from Monday's 105.68-point finish. Their yield rose to 5.395 percent from 5.385 percent.