GBP/JPY is reporting biggest weekly gain since October

• GBP/JPY looks set to report the biggest weekly gain since late October. 
• Falling odds of "soft Brexit" and risk-on action in the equities could keep GBP/JPY on the offensive. 

GBP/JPY is currently trading at 141.94, representing a 1.7 percent gain from the weekly opening price of 139.28.

That is the biggest weekly gain since the week ended Oct. 26, when the pair had rallied 2.5 percent.

Sterling is reporting solid gains this week, mainly due to growing expectations that Britain can avoid a no-deal or hard Brexit.  

Prime Minister Theresa May's Brexit deal suffered a heavy defeat in parliament. The leader, however, survived a vote of no confidence. The resulting drop in the political uncertainty likely put a bid under the British currency.

Analysts believe the risks are skewed in favor of soft Brexit. Further, the talk of a second referendum is also gathering pace and a YouGov poll shows "remain" would win by a 12 percentage point margin if Britons head to polling stations again.

Notably, the pair may extend weekly gains before the NY close, as the JPY will likely remain offered amid risk-on action in the equities. As of writing, the S&P 500 futures are reporting a 0.30 percent gain.

GBP/JPY Technical Levels