Fundamental overview:

GBP/JPY is expected to trade in lower range. It is underpinned by the diminished expectations of Bank of England's rate increase in early 2015 after lower-than-expected U.K. September CPI, sterling sales on cross trades versus major currencies and increased risk aversion. U.K. labour data released Wednesday were mixed as lower-than-expected U.K. unemployment rate of 6.0% in the three months to August (versus forecast 6.1%) was offset by a fewer-than-expected 18,600 drop in U.K. September jobless claimants (versus forecast of minus 33,000), while average wages rose by just 0.7% on year, less than half the rate of inflation and taking pressure off the BOE to raise interest rates from their current record-low 0.5% level. demand from Japan importers and buoyant EUR/USD. But GBP/JPY gains are tempered by the soft USD/JPY and and Japan exporter sales.

Technical comment:
Daily chart is still negative-biased as MACD is bearish, stochastics stays suppressed at oversold zone, five and 15-day moving averages are declining, although inside-day-range pattern was completed on Wednesday.

Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 168.25. A break of this target will move the pair further downwards to 167.35. The pivot point stands at 171.20. In case the price moves in the opposite direction and bounces back from the support level, then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 172.45 and the second target at 173.35.

Resistance levels:
172.45
173.35
174
Support levels:
168.25
167.35
166.75