Certainly the Nonfarm Payrolls resulted in many pairs that had been in uptrends to pull back down off of the highs. Most of those pairs then rallied up to new recent highs. This recent pullback saw most move down through the lows printed after the NFP release. However, the GBP pairs were able to stay above those lows. The GBP/USD is in a similiar position, but my choice of the GBP/JPY has to do with my uncertainty about the strength/weakness of the USD. I think that the USD might be stronger than the JPY as the 4-hour chart of the USD/JPY seems to be making higher highs and higher lows. It is not that much of difference, but to me the USD does seem stronger, so I chose to buy the GBP/JPY instead of the GBP/USD. It might not be that much of an edge, but I will take any edge I can identify. I do try to match the strongest currency with the weakest. I think that the relative strength of the various currencies can increase our chance of success, so I think it is worth the time to take a look first before opening a trade.

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