Transitioning from Bearish Pressure to Potential RecoveryGBP/JPYOANDA:GBPJPYXAU_CAPITALThe GBPJPY pair is currently navigating a transitional market phase. After a sustained bearish trend, highlighted by a Break of Market Structure (BMS) and successive Lower Lows (LLs), recent price action signals a potential shift. A Change of Character (CHoCH) has emerged, as the market has begun forming Higher Lows (HL) and Higher Highs (HH), indicating that the downward momentum may be losing strength. Price is testing a premium liquidity zone near 211.681, but caution is warranted: the heavy red circle on the chart suggests possible short-term exhaustion, signaling a likely retracement or stop-hunt before any continued upward movement. Fundamentally, GBPJPY volatility is underpinned by diverging central bank dynamics. The Bank of Japan (BoJ) has adopted a hawkish stance, with markets anticipating a rate increase to 1.00%–1.25% at the upcoming late-April meeting. This prospect strengthens the Yen, creating resistance for the pair. Simultaneously, the British Pound faces domestic challenges, with flat GDP growth and rising energy costs amid ongoing geopolitical tensions in the Middle East, adding downward pressure. This divergence supports a potential pullback scenario, where the pair may retreat toward the 209.500 demand zone after testing the current highs. Looking ahead, GBPJPY appears poised for a “buy the rumor, sell the fact” dynamic. A likely liquidity grab near current highs may precede a decline to the 209.500 area, which will serve as a key inflection point. If demand holds, a secondary bullish phase toward 213.500 could unfold, driven by renewed market risk appetite once the BoJ’s policy trajectory becomes clear. Traders should monitor volatility closely around the April 28 BoJ decision, as any deviation from expected rate hikes could sharply reverse the current technical trend.