Forex: EUR/JPY, USD/JPY gap higher to year highs

FXstreet.com (Buenos Aires) - Early exit polls show that conservative Liberal Democratic Party (LDP) lead by Shinzo Abe, will likely get 300 out of 480 seats in the lower house, and along with the New Komeito party, will be able to control a two-thirds majority in the upper house, a clean victory for the party ruling back in 2007. With this result, Parliament is expected to vote Abe in as prime minister on December 26th. Abe has called for unlimited monetary easing, granting more yen weakness in the months to come.

Early interbank data shows USDJPY quoting around 84.40, from a New York close of 83.50, and above 84.17 previous year high, posted March 15th, now immediate support. From historical data, above 84.50, there's not much technical resistance until 85.60 price zone. The EURJPY stands around 111.10 from a Friday close of 109.90 with the year high stands at 111.42 immediate resistance level. "Don't expect yen crosses to fill Sunday gaps anytime soon" says Valeria Bednarik, FXstreet.com chief analyst. "Small retracements in yen crosses will could be seen, yet buyers will seize the chance and jump quick in, leaving the downside now quite limited,"