# USD/JPY Bounces Above Demand Zone

> USD/JPY rebounds above key demand zone after BoJ governor's inflation warnings.
- Title: USD/JPY Bounces Above Demand Zone · TradingView | Shortify
- Summary: 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…
- Keywords: usd/jpy, boj, kazuo ueda, inflation, wage-price cycle, demand zone, price action, elliott wave, business, finance, USD, JPY
- Source: TradingView — https://tradingview.com/chart/USDJPY/DAQm2t7f-USD-JPY-Maintains-Bullish-Bias-Bounces-Above-Demand-Zone
- Published: 2026-10-19T05:57:00+00:00
- Read time: 1 min
- Topics: usd/jpy, boj, kazuo ueda, inflation, wage-price cycle, demand zone, price action, elliott wave, business, finance
## 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.
## Key takeaway

USD/JPY maintains bullish bias by bouncing above 157.600-157.800 demand zone after BoJ governor Ueda warned of inflation risks.