The dollar rose against the yen and stock prices fell in sluggish trading in Tokyo yesterday. The dollar closed at 135.95 yen, up 0.25 yen from Friday's close of 135.70 yen. In four trading days the dollar has gained 2.92 yen. Financial markets were closed on Monday for a national holiday. The 225-issue Nikkei Stock Average closed at 23,767.88 points, down 1.46 percent from Friday's close.

American Airlines claims its pilots are staging a sickout over stalled contract talks and have contributed to flight cancelations, a charge the pilots union denied. American management and the Allied Pilots Association have been negotiating a revised contract for 14 months, but have made little headway. An American spokesman said an increase in the number of pilots calling in sick, coupled with bad weather, the holiday traffic crush and the airline's loss of 230 pilots to Operation Desert Shield led to an unusually high number of flight cancelations over the weekend.

Japan's image is favorable to a majority of people surveyed in major European countries, but the nation is viewed as not fulfilling its global responsibilities. Japan's Foreign Ministry, which conducted the survey, said the chief criticism was that Japan needs to correct its trade imbalance. However, many respondents said the creation of one European market, planned for 1992, will improve relations between Japan and the European Community.