The U.S. Dollar has declined against the Yen for the majority of the past 30-years, reflected in the chart above. An important high in the US$/Yen took place back in 2007, as well as a high in the S&P500.  Now the US$/Yen is facing a 30-year resistance line at (2) in the chart above.

Why could this line be important to the next major move in the S&P 500?  The inset chart in the upper right reflects that since mid-2011, the S&P 500 and US$/Yen have a high degree of correlation. 

King Dollar to the Yen is now at a test it hasn’t had in 30-years…a key test of resistance!!!   A breakout at (2) would suggest higher prices for SPY.  Keep a very close eye on the US$/Yen in the upcoming weeks!!!

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past