How can Pete solve a logarithmic problem using the Change of Base Formula?

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Helicobacter
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Pete has access to a scientific calculator and only knows the Definition of a Logarithm and the Change of Base Formula. How is Pete able to solve the following problem?:

x^(log base x of y) =
 
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log base b of n = x <=> b^x = n
 
Let
[tex]\xi = \log_x y[/tex]
[tex]\Leftrightarrow x ^ {\xi} = y[/tex], right?
So:
[tex]x ^ {\log_x y} = x ^ {\xi} = ?[/tex]
Can you go from here? :)
 
Thanks! (Previously I knew the cancel-out-rule, but I didn't understand why you can cancel.)