USD/JPY peeps above 105.00 as S&P 500 futures rise

• Reports of US/China dialogue lift S&P 500 futures.
• The JPY is being offered in Asia.
• Focus on trade tensions.

China's attempts to avert a full-blown trade war with the US seems to have put a bid under the risk assets.

For instance, the S&P 500 futures are trading 12 points or 0.47 percent higher at press time. Consequently, the Japanese Yen ran into offers, pushing the USD/JPY pair to a session high of 105.05. As of writing, the spot is trading at 104.89.

The upside is being capped supposedly due to the fact that Asian equities are finding little love despite the uptick in the US index futures As of writing, the Shanghai Composite is down 1.24 percent. Also, stocks in Australia, New Zealand, and Hong Kong are reporting losses.

Focus on trade tensions

The data calendar is light, hence the focus remains on US-China trade tensions. The relief rally in the risk assets will likely gather traction if the US and/or China soften their stance on trade between the two countries.

USD/JPY Technical Levels

A break above the immediate resistance of 105.25 (March 2 low) would open doors for 105.50 (5-day MA) and 105.87 (10-day MA). On the other hand, a move below 104.64 (Friday's low) would expose 105.41 (December 2013 high) and 105.00 (psychological support).