USD/JPY above 107.00, S&P 500 futures rise on President Xi's comments

• China's President Xi announces plans to further open up China's economy.
• Says dialogue is the way to resolve disputes
• S&P 500 futures rise 1 percent, USD/JPY jumps above 1 percent.

The USD/JPY pair picked up a bid as the S&P 500 futures cheered China's President Xi's soft stance on the ongoing trade dispute with the US and plan to open up the economy further.

As of writing, the pair is trading at a session high of 107.12. Meanwhile, the S&P 500 futures are up 1.10 percent or 25 points.

The risk assets seem to have taken a heart from the fact that China plans to move ahead with opening up its economy further despite the rise of protectionism in the West. Xi said China will lower import tariffs on autos and other products and significantly broaden market access.

Xi's soft stance will likely reduce the odds of a further escalation of a trade war and could put an end to tit-for-tariffs between the US and China.

Hence, the equities in Europe and US could open on a positive note as indicated by the futures. Thus, USD/JPY could challenge last week highs around 107.50.

USD/JPY Technical Levels

Acceptance above 107.00 has opened the doors to 107.50 (last week's high). A violation there would alleviate bearish pressure and allow a rally to 107.91 (Feb. 21 high). On the downside, if the pair drops below 106.62 (session low), then a pullback to 105.66 (April 2 low) cannot be ruled out.