The IMF upgrades this year's U.S. growth forecast and U.S. stocks rise, sending the dollar/yen rebounding for the first time in three days.

【1/17Market Overview

During Tokyo time, the USD/JPY fell to154.97yen on concerns over the decline in the Nikkei average. Afterward, a recovery led the move. As the Nikkei narrowed its losses, the USD/JPY rose to155.70yen. In European session, speculation circulated that the Bank of Japan would consider additional rate hikes at the policy meeting to be held on23–24days, and that “if the majority of the nine Policy Board members support an additional rate hike” was expected, leading to some yen buying and dollar selling, but the reaction was limited as the view that “additional tightening is already priced in” prevailed. Also, the record highs in the FTSE100UK and the DAXGermany supported the dollar/yen floor.In NY time,the IMF raised its outlook for U.S. growth for this year, and the Dow Jones average briefly rose over500points. On a risk-on flow, yen selling and dollar buying led the move.12month U.S. housing starts/building permits and12month U.S. industrial production beating expectations also supported the dollar/yen, which rose to156.37yen and3 days high rebound.