Fundamental overview:

GBP/JPY is expected to consolidate with bearish bias. It is undermined by the soft GBP/USD; and Japan exporter sales. But GBP/JPY losses are tempered by the demand from Japan's importers. GBP sentiment is hurt by lower-than-expected U.K. September CPI (came in at five-year low of +1.2% on-year versus forecast +1.4%) which prompted investors to push back expectations of Bank of England's rate increase in 2015.

Technical comment:
Daily chart is negative-biased as bearish outside-day-range pattern was completed on Tuesday, 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 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