Forex - Yen retreats from 8-week high against dollar

Forex Pros – The yen retreated from an 8-week high against the U.S. dollar on Wednesday, after a Japanese government minister said the Bank of Japan has been cooperating with the government to beat deflation.

USD/JPY hit 88.72 during European morning trade, a daily high; the pair subsequently consolidated at 88.61, gaining 0.01%

The pair was likely to find support at 87.95, the low of May 6, and resistance at 89.98, the high of June 25.

Earlier in the day, Japanese economy minister Satoshi Arai said "The government has strengthened its cooperation with the BOJ through regular talks. The bank has been responsive in this regard ... It has taken various monetary policy steps and is making great efforts together with the government".

The yen was also down against the euro, with EUR/JPY gaining 0.3% to hit 108.33.

Later in the day, the U.S. payroll processing firm ADP was to release a key report on employment change in the U.S. private sector. Also Wednesday, an industry report was due to be published on the manufacturing sector in the Chicago area. The U.S. was also to release data on crude oil inventories.