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My wrist was still a little sore yesterday so I wasn't able to check out the charts and find a good trade then. Although there wasn't much volatility yesterday, I could've taken another short GBPJPY trade, this time on the retracement.Risk appetite surged last week after the US printed better than expected employment figures. However, sentiment for the UK economy remains grim, which means that the GBPJPY rally from Friday was probably short-lived. Looking at the GBPJPY 4-hour chart, I noticed a nice trade setup that I probably would've taken. You see, I've been waiting to short this pair again after its strong dive from last month... but I couldn't pick a good entry point. Drawing a Fibonacci tool on the pair's latest down swing, I noticed that the 50% Fibonacci level nearly coincides with an area of interest on the 4-hour chart. A short order at the psychological 137.00 or at 137.50 would've been a good trade..

Still, if I had noticed this setup, I probably would've set an order at the 61.8% Fib, which is in line with the pair's top weekly ATR. Hmm. The pair hasn't made a new low yet so maybe it could pull back a little farther...