S&P 500 futures turn positive, USD/JPY trims losses

• S&P 500 futures turn positive, help USD/JPY retake the 106.00 handle. 
• Stock markets are in the driver's seat.

The USD/JPY has recovered 20 pips from the session low of 105.82, tracking the uptick in the S&P 500 futures.

As of writing, the futures are trading 6 points or 0.24 percent higher on the day. About an hour ago, the futures were down more than 0.20 percent as Trump's plan to impose fresh tariffs on China boosted fears of a full-blown US-China trade war.

It remains to be seen if the S&P 500 futures hold on to gains during the day ahead. For now, the positive turn is helping the USD regain some poise.  

USD/JPY Technical Levels

The immediate support is seen at 105.55 (Feb. 16 low) would expose recent low of 105.25 (March 2 low) and 105.00 (major psychological support). Meanwhile, on the higher side, only a close above 106.75 (previous day's high) would signal bearish invalidation and open doors for re-test of 107.29 (weekly high) and 107.91 (Feb. 21 high).