Fundamental overview:

GBP/JPY is expected to trade in lower range.It is supported by the soft USD/JPY and demand from the Japanese importers. GBP/JPY is also supported by the negative dollar sentiment and expectations that BOE would raise interest rates in early 2015 ahead of the Federal Reserve. But GBP/JPY gains are tempered by the sterling sales on cross trades versus major currencies and negative risk sentiment.

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.

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 171.60. A break of this target will move the pair further downwards to 171.20. The pivot point stands at 172.65. 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 173.35 and the second target at 174.05.

Resistance levels:
173.35
174.05
174.35
Support levels:
171.60
171.20
170.80