GBP/JPY Analysis: Shorterm Buy

The GBP/JPY pair currently shows a retracement from recent highs, and we can observe key levels of support and resistance based on Fibonacci retracement levels and trend lines.

Trendline Support: A rising trendline from previous lows suggests continued bullish momentum as long as the price respects this trendline. The recent test of this trendline indicates a possible continuation to the upside if buyers maintain control.

Fibonacci Retracement Levels: Key retracement levels are marked:

The 23.6% retracement near 198.97 serves as the first potential resistance area. A break above this level could lead the price towards the next resistance.
38.2% (198.61) and 50% (198.33) levels provide additional zones where the price might face resistance before potentially moving higher.
Key Support Levels:

The 198.00 level acts as a psychological and technical support, with further support down to 197.50.
If the price breaks below these support levels, it may signal a reversal or deeper correction.
Potential Scenarios:

Bullish Scenario: If the price respects the trendline and moves above 198.97, we might see an attempt to test the recent highs around 199.50 - 199.70.
Bearish Scenario: Failure to hold above the trendline and a breakdown below 197.50 could initiate a deeper pullback, possibly targeting support levels around 196.50 or lower.
Conclusion: The bias remains bullish as long as the trendline support holds. However, key resistance levels around 198.97 - 199.50 need to be watched closely, as they could signal either a breakout to new highs or a potential reversal if selling pressure intensifies.