GBP/JPY Price Action: Buyers Regain Control Above Key SupportGBP/JPYOANDA:GBPJPYGlobal_Gold_InsightsGBP/JPY Technical Outlook GBP/JPY has experienced a sharp decline after repeated rejection from the descending trendline and the highlighted resistance zone, confirming that sellers initially maintained control of the market. The aggressive sell-off swept liquidity below previous lows before finding strong buying interest inside the marked demand area. This liquidity sweep appears to have triggered a bullish reaction, allowing buyers to reclaim lost ground and begin rebuilding the market structure. Price is now attempting to recover above short-term resistance while approaching an important decision zone that could determine whether the recovery develops into a larger bullish reversal or remains a temporary corrective bounce. From a technical perspective, the recent recovery suggests that buying pressure has strengthened after the liquidity grab. Higher lows are beginning to develop on the lower timeframes, while the highlighted demand zone continues to attract buyers. However, the market still faces overhead resistance created by the previous breakdown. A successful breakout above this resistance would confirm improving momentum and increase the probability of a move toward the higher target area. Until that confirmation occurs, traders should remain aware that sellers may attempt to defend resistance and trigger another corrective decline. Bullish Scenario The bullish outlook remains valid as long as price continues holding above the newly established support area and buyers maintain control of the recovery. Bullish confirmation: • Strong bullish candle closing above the immediate resistance zone. • Successful retest of the breakout level as new support. • Continuation of higher highs and higher lows. • Increasing buying volume supporting the recovery. Bullish Targets: • Target 1: 214.80 • Target 2: 215.40 • Target 3: 216.125 (Primary Target Area) • Extended Target: 217.20–218.00 if bullish momentum accelerates and buyers reclaim the previous supply zone. Bullish invalidation: A sustained move below the highlighted support zone and a break beneath the recent recovery lows would invalidate the bullish setup and favor renewed selling pressure. Bearish Scenario Although buyers have produced an impressive rebound from the liquidity sweep, the overall market remains vulnerable while price trades beneath the major resistance area. If the recovery loses momentum and sellers defend resistance, another bearish leg may develop. Bearish confirmation: • Strong rejection from the recovery resistance zone. • Bearish engulfing candle or multiple failed breakout attempts. • Breakdown below the ascending recovery trendline. • Increasing selling volume during rejection. Bearish Targets: • Target 1: 212.80 • Target 2: 211.40 • Target 3: 210.00 • Extended Target: 209.20 if bearish momentum strengthens and sellers regain full control. Bearish invalidation: A decisive breakout above resistance with strong bullish momentum would invalidate the bearish correction scenario and increase the probability of continued upside. Key Technical Levels • Immediate Resistance: 214.30–214.80 • Major Resistance: 216.125 • Immediate Support: 212.80 • Secondary Support: 211.40 • Major Demand Zone: 210.00–209.80 • Bullish Breakout Confirmation: Sustained close above 214.80 Key Trading Points • The previous downtrend was confirmed by repeated rejection from the descending trendline. • A significant liquidity sweep below recent lows attracted strong buying interest. • Buyers are attempting to rebuild bullish market structure through higher lows. • The highlighted demand zone remains the key area supporting the current recovery. • Price is approaching an important resistance level where volatility may increase. • A confirmed breakout above resistance would strengthen the case for a continuation toward 216.125. • Failure to overcome resistance may encourage sellers to regain control and push price back toward the demand zone. • Volume and candlestick confirmation should be monitored closely before entering new positions. • Proper risk management remains essential, particularly around major resistance and support levels where sharp price swings are common. Trading Perspective The current technical picture shows signs of a developing bullish recovery following a successful liquidity sweep, but confirmation is still required before declaring a complete trend reversal. Buyers have regained momentum by defending the demand zone and creating a sequence of higher lows, yet the market remains below an important resistance barrier. A confirmed breakout above resistance would shift sentiment further in favor of the bulls and expose the 216.125 target area, while failure to maintain the recovery could allow sellers to resume the broader bearish move. Waiting for clear price action confirmation at these key levels offers a higher-probability trading approach than anticipating the next move.