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USD/JPY Bounces Above Demand Zone
USD/JPY rebounds above key demand zone after BoJ governor's inflation warnings.
In brief
USD/JPY rebounds above key demand zone after BoJ governor's inflation warnings. USD/JPY maintains bullish bias by bouncing above 157.600-157.800 demand zone after BoJ governor Ueda warned of inflation risks. Originally reported by TradingView.
USD/JPY Bounces Above Demand Zone
USD/JPY reversed slight losses during Asian session on Monday, October 19, 2026, climbing above psychological 158.00 level.
BoJ Governor Ueda Warns of Inflation Risks
BoJ Governor Kazuo Ueda cautioned that improper policy interest rate adjustments could push long-term interest rates higher due to inflation risks.
“if the policy interest rate is not adjusted appropriately, market concerns regarding inflation risks could push long-term interest rates higher”
Virtuous Wage-Price Cycle Confirmed
Ueda confirmed Japan experiences a virtuous cycle with sustained wage growth and price recovery near 2% inflation target.
BoJ Rate Hike Scenarios
BoJ officials reportedly reluctant to implement back-to-back rate hikes at October 29, 30 meeting without sudden inflation surge.
Price Action Analysis
USD/JPY forms bullish accumulation zone between 157.600 and 158.900 with recent rejection above 157.600-157.800 floor.
Elliott Wave Projection
USD/JPY projected to test 158.461 resistance before targeting 158.900-159.040 supply zone and psychological 159.500 level.
The short version
USD/JPY maintains bullish bias by bouncing above 157.600-157.800 demand zone after BoJ governor Ueda warned of inflation risks.
