Investing.com - The U.S. dollar was almost unchanged against the yen on Wednesday, hovering close to an eight-year high as demand for the greenback remained broadly supported by expectations for a U.S. rate hike in the coming months.
USD/JPY hit 123.31 during European morning trade, the session high; the pair subsequently consolidated at 123.05.
The pair was likely to find support at 121.48, Tuesday's low and resistance at 123.33, Tuesday's high and an eight-year high.
Demand for the dollar continued to be underpinned after data on Tuesday showed that U.S. business investment plans increased, consumer confidence improved and house prices extended gains.
The upbeat data supported the view that the Federal Reserve could start to raise interest rates later in the year if the economy continues to improve as expected.
In Japan, the minutes of the central bank's April meeting earlier showed policymakers pushed back the time frame for achieving its 2% inflation target, fuelling expectations for additional monetary easing later this year.
The yen was lower against the euro, with EUR/JPY advancing 0.42% to 134.42.
The single currency found support after the Greek government expressed confidence to that it would make a €305 million payment to the International Monetary Fund due on June 5.
Athens had previously warned that it would be unable to make the repayment if a cash-for-reforms deal with its international lenders was not reached by then.
The euro received an additional boost after data on Wednesday showed that German consumer confidence improved this month.
The GfK consumer sentiment index ticked up to 10.2 from 10.1 a month earlier, boosted by increased domestic demand. It was the highest level since October 2001.