Jack Crooks and His Take on the British Pound vs Japanese Yen

You can read Jack Crooks' analysis of the British pound and the Japanese yen here.

$BPC - BRITISH POUND, CASH

The monthly chart shows the British Pound to be in a massive corrective wave. The last move up off the 1985 lows into the November 2007 high was made with an abc 3 wave pattern. The November 2007 high was made with divergence in the momentum indicator. Sellers came out in force during the month of December 2007. Look for continued weakness.

Weekly chart shows a break of the uptrend line that was in place for most of the year. IF we get a test of the current November high, THEN look for signs of weakness to exit if still long, or to enter into a sell short.

$JYC - JAPANESE YEN, CASH

Monthly chart shows the yen to be in a huge consolidation pattern from 1998, when it found support off a .618 fib level. No clear buy signal as of yet ... the last move up which began July 2007 traced a 3 wave pattern into the November 2007 high. December saw a pullback in the Japanese Yen.

Weekly chart better shows the abc 3 wave pattern made from the July 2007 low into the November 2007 high. Early buyers stepped back into Yen this last week, creating a bullish engulfing candle pattern. Look for a test of the November 2007 high in the next few weeks.