USDJPY LONG /w SPX BOUNCE, OVERSOLD, MAJOR SUPPORT + DIVERGENCE

24 Mar 2018

SPX has taken a beating lately, and has dragged down the USDJPY to a major support level. The question is, can it break this support, or will it bounce from here first? I believe we will see a bounce play out here before it falls much further. It may pierce the support level, but I don't think it will stay well below for now. SPX is very oversold, and the last time it reached these levels of oversold RSI, it bounced a solid 8.79%, to its highest point. SPX is also sitting on its 200-Day SMA, so I believe there is a good chance it will bounce, like it did last time, and if it does, it will bring the USDJPY up with it.
SPXUSDJPY