TOKYO, April 25 (Reuters) - Japan's Nikkei share average traded lower on Thursday after rising sharply in the previous session, with technology stocks leading the losses.

The Nikkei fell 1.67% to 37,818.11 by the midday break, set to snap a three-session rally.

The index rose 2.4% on Wednesday to reclaim the 38,000 level in its biggest daily jump in more than a month.

The broader Topix was down 1.25% to 2,676.73.

"The market has been volatile lately because there are many uncertainties that have changed investors' premises," said Kentaro Hayashi, senior strategist at Daiwa Securities.

"Inflation in the U.S. is more persistent than expected, which pushed U.S. yields higher, and geographical tensions in the Middle East have lifted oil prices."

A Nikkei volatility index hit 27.82 on April 19, its highest level since Oct. 3, and was last at 20.77.

Chip-related shares dragged the Nikkei lower, with Tokyo Electron and Advantest falling 3.22% and 2.04%, respectively. Shin-Etsu Chemical lost 2.22%.

Technology investor SoftBank Group fell 1.12%.

Toyota Motor fell 2.87% despite the yen's hitting a 34-year low.

Overnight, the yen fell below 155 to its weakest against the dollar since June 1990, a level seen as authorities' line in the sand that heightens the chance of currency intervention.

The market is focusing on whether Bank of Japan Governor Kazuo Ueda will make any hawkish comments on prospects of a near-term interest rate hike at the end of its two-day policy meeting on Friday.

Fanuc lost 2.51% after the robot maker's annual profit forecast was below the market expectations.

Canon slumped 7.09% after the camera maker's annual operating profit missed analysts' expectations.

Bucking the trend, Renesas Electronics rose 2.36% after the chip-maker issued a positive outlook for chips used in cars.

Of the 225 Nikkei components, 32 stocks rose, while 193 fell.

(Reporting by Junko Fujita; Editing by Rashmi Aich)