TOKYO, May 31 (Reuters) - Japan's Nikkei share average is set to recoup some of its recent steep losses on Friday, as soft U.S. economic data eased concerns that the Federal Reserve would soon start unwinding its massive stimulus. However, investors in Japanese equities remain on edge amid the recent volatile price action and sharp declines, including Thursday's 5.2 percent slide to a five-week low that came on top of the 7.3 percent plunge on May 23 - the worst single-day loss since the March 2011 earthquake and tsunami. Market players said the Nikkei was likely to trade between 13,500 to 13,850 during the session after closing at 13,589.03 on Thursday. Nikkei futures in Chicago closed at 13,810, up 1.5 percent from the close in Osaka of 13,610. The recent selloff was triggered by worries the Fed would taper its bond-buying programme this year and slowing growth in China, Japan's second biggest export market. Still, analysts said the recent correction that has seen the Nikkei drop nearly 15 percent from its 5-1/2-year high on May 23 has made Japanese stocks attractive to buy back. "It's not a bull market, it's just a correction," said Kenichi Hirano, a strategist at Tachibana Securities. "The index has broken below its 25-day moving average, and it's a comfortable level to buy back." The Nikkei is currently trading 5.7 percent below its 25-day moving average of 14,418.01. The support line is pegged at its 13-week moving average of 13,441.66, Hirano said. Though investors are likely to buy battered stocks, analysts expect volatility in Japanese equities to persist for a while longer, with investors closely watching Fed Chairman Ben Bernanke's speech on Sunday and U.S. jobs data next week. > Wall St ends up on optimism Fed stimulus to remain > U.S. dollar slides as soft data offsets Fed taper talk > Prices near flat as investors weigh Fed's course > Gold hits 2-wk high as U.S. data quells Fed taper talk > Crude oil ends mixed, swayed by views on economy and Fed STOCKS TO WATCH -- Tokyo Electric Power Co Fukushima nuclear plant operator Tokyo Electric Power will ask for additional funds from the Japanese government as early as Friday to pay those affected by the reactor meltdown two years ago, the Nikkei reported. -- Sony Corp Sony has tapped Morgan Stanley and Citigroup to help sound out options for its entertainment business, according to a media report.