# Trend Continuation for GBP/JPY (February 19, 2014)

Source: https://www.tradersway.com/resources/market-info/trend-continuation-for-gbp-jpy-february-19-2014/
Language: en
Updated: 2014-02-19

Thanks to the recent upward revision in the BOE’s growth and inflation forecasts, combined with the BOJ’s easing bias, GBP/JPY has been climbing up the charts and trading above a rising trend line on the 1-hour time frame.



However, the weaker than expected UK CPI released this week triggered a bit of a selloff for this pair. It is currently testing the rising trend line, which coincides with an area of interest. The 170.50 minor psychological level used to be a resistance area and now it might act as support.



Stochastic is almost in the oversold region and making its way out so a bounce might be in the works. If that’s the case, the pair might climb back up to the previous highs around the 172.00 mark or make new ones.



![Trend Continuation for GBP/JPY (February 19, 2014)]



Going long at market with a stop below 170.00 and an initial target of 172.00 could make a 2:1 return on risk. Aiming for new highs could improve the reward potential while trailing the stop could help protect profits.



*By Kate Curtis from Trader’s Way*