USD/JPY hit 102.03 during late Asian trade, the session low; the pair subsequently consolidated at 102.06, shedding 0.26%.
The pair was likely to find support at 101.25, the low of May 14 and resistance at 102.51, the session high.
The dollar rallied 1.4% against the yen on Tuesday after data showed that U.S. consumer confidence rose to the highest level since February 2008 in the current month.
The Conference Board said its index of U.S. consumer confidence rose to 76.2 in May from 69.0 in April and beating expectations for a reading of 71.0.
A separate report showed that the Case-Shiller U.S. home price index rose 10.9% in March from a year earlier, the biggest increase since April 2006.
The robust data boosted expectations that the Federal Reserve will wind down its USD85 billion-a-month asset purchase program later this year.
Elsewhere, the yen was higher against the euro, with EUR/JY slipping 0.17% to 131.32.
Investors were looking ahead to German data on consumer prices and employment change later in the trading day.