FOREX-Dollar gets mojo back on rate view, hits fresh high vs yen

* Dollar jumps above 123.00 yen, euro slides below $1.09

* Upbeat U.S. data shifts focus back on Fed hike this year

* BOJ minutes next up

By Ian Chua

SYDNEY, May 27 (Reuters) - The dollar held broad gains early on Wednesday, having rallied to an eight-year high against the yen after a batch of upbeat data bolstered the case for a U.S. interest rate hike this year.

The greenback climbed as far as 123.33 yen on Tuesday, reaching a high not seen since mid-2007. It last stood at 123.14, within reach of its June 2007 peak of 124.14. A break there would take it to levels last seen in late 2002.

Traders said stop-loss buying was triggered when the dollar cracked key resistance around the 122.04 high set back in March.

It also rose against the euro, which slid to its lowest since April 28 at $1.0864. The common currency last stood at $1.0870.

All that helped the dollar index rally 1.3 percent on Tuesday, its biggest one-day gain in nearly two years. The index gained further to 97.380 in Asia, hitting one-month high.

Commodity currencies also lost ground against the resurgent dollar, with the Australian dollar falling to a one-month low of $0.7727. Its New Zealand peer skidded to its lowest in over two months at $0.7222.

In a keynote speech last Friday, Federal Reserve Chair Janet Yellen said interest rates are likely to rise this year but the pace of tightening will depend on the strength of economic data.

So the dollar's rally should come as no surprise after news on Wednesday showed a core gauge of U.S. business investment spending plans rising solidly in April.

"The dollar is broadly supported after Yellen's comments. The market will test the dollar's upside for now unless U.S. policymakers warn against excessive strength," said Osao Iizuka, chief currency dealer at Sumitomo Mitsui Trust Bank in Tokyo.

Other reports showed consumer confidence perked up this month and new home sales rose last month.

"They weren't extraordinary, but good enough for a return to considering higher U.S. interest rates this year," said Emma Lawson (Other OTC: LWSOF - news) , senior currency strategist at National Australia Bank.

Oddly, longer-term U.S. yields turned lower and analysts suggested they could be held down by flight to quality flows due in part to concerns about a Greek debt default.

Greece tried to play down such fears on Tuesday, with the government saying it would try to make a payment to the International Monetary Fund next week.

Finance Minister Yanis Varoufakis also expressed confidence a deal with lenders would be struck in time to avoid default.

The United States is likely to press Europe at the G7 finance ministers meeting this week in Germany to reach a deal on funding-for-reforms with Greece, an official close to the discussions said on Tuesday.

Finance ministers of the United States, Canada, Britain, Japan, Germany, France and Italy - the G7 - meet on Thursday and Friday in the German city of Dresden. (Additional reporting by Hideyuki Sano in Tokyo; Editing by Richard Pullin and Eric Meijer)