The most unpredictable elections of the year is happening this Sunday.We might see a big gap on Monday following the results. A Macron vs Fillon face off on the second round would allow the Euro to rally on Monday. But ANY other results would make the bear hungry.
This is why I'm entering a short position on the EUR/JPY . The 1.618 Fib retracement (117.135) of the first impulse was broken on the 11/04/17. A nice pattern appeared on 17/04/17 and the pair went back to touch the 1.618 level again. The broke the 20 lower band which means that there is a high probability of seeing a new low.
The 1.618 acted as a nice resistance and a negative news on Sunday means we are touching that 113.575 level.