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EURJPY Looking for Fibonacci Support?

The Elliott Wave Principle is a market forecasting method, based on pattern recognition. If an analyst is able to recognize a pattern on the chart and knows what should follow, he could as well be able to predict what the market is most likely to do next. That is what we are going to try to do by looking at the 15-min chart of EURJPY, given below.
eurjpy 3.3.16
As visible, the pair rose from 122.05 to 124.35 during the first two days of March. The important thing is that this rally has a five-wave structure, marked (1)-(2)-(3)-(4)-(5). According to Elliott Wave terminology, this is an impulse. Impulses show the direction of the larger trend. The catch is that every impulse is followed by a three-wave correction in the opposite direction. That is what we believe the pair is currently involved in – an (A)-(B)-(C) zig-zag retracement. If this is the correct count, EURJPY has to make another decline in wave (C), before the bulls return. The 61.8% Fibonacci level could be relied on to stop the bears, which means we are going to be expecting a bullish reversal near 122.90. However, even if the pull-back extends beyond this level, the positive outlook remains valid as long as the invalidation level at 122.05 holds.

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