FXstreet.com (Barcelona) - NY session bids pushed the USD/JPY above the previous daily high of 85.87, successfully hitting the 86.00 mark and extending gains to 85.15. This move triggered many stops not only as it rallied, but also on the profit taking part of the momentum. The pair fell back to 85.75 in no time, and is now quoting around 85.90.

The NY session saw released new updates of the US new home sales and consumer confidence. US new home sales came in a little lower than the expected 0.378M by rising from 0.361M (revised from 0.368M) to 0.377M in October, meaning a 4.4% since September. Consumer confidence fell from 75.1 (revised from 73.7) to 65.1, coming much lower than the expected 70.3.

“USD/JPY has risen above its strong resistance at 85.53 (06/04/2011 high) and is challenging the resistance at 85.93”, wrote MIG Bank analyst Bijoy Kar, favoring a phase of weakness and pointing to supports at 84.60 (25/12/2012 low) and 83.86 (20/12/2012 low).