Article: The Japanese Yen (JPY) has experienced a significant rally, reaching a three-month high against the US Dollar (USD) during the early part of the European session on Thursday. This surge comes as investors rapidly price in the possibility of a pivot from the negative interest-rate regime by the Bank of Japan (BoJ).

The BoJ has been discussing options for a potential shift away from negative interest rates and has conducted a special survey of market participants to assess the impact and side effects of such a move. BoJ Governor Kazuo Ueda's visit to Prime Minister Fumio Kishida's office has further fueled speculation of a major policy shift by the Japanese central bank, providing significant support to the JPY.

In contrast, the Federal Reserve (Fed) in the United States is expected to begin cutting interest rates as early as March 2024. This anticipation, coupled with easing inflationary pressures and signs of a loosening labor market, has triggered a corrective slide for the USD. Despite a rebound in US Treasury bond yields, the USD has struggled to maintain its strength.

A softer risk tone in the market has also contributed to the JPY's safe-haven status, putting downward pressure on the USD/JPY pair. Traders are closely watching the psychological mark of 145.00 for the pair and are anticipating a further decline.

Investors' sentiment regarding the US job market has been affected by signs that the historically tight labor market is loosening. Concerns about a potential economic slowdown have further bolstered the appeal of the Japanese Yen as a safe-haven currency.

Looking ahead, the release of the US Weekly Initial Jobless Claims data during the North American session is expected to provide further impetus to the market. Additionally, the upcoming release of the key Nonfarm Payrolls data will shed more light on the state of the US labor market.

From a technical perspective, the USD/JPY pair has struggled to move above the 100-day SMA resistance breakpoint and remains in bearish territory. Oscillators on the daily chart indicate a negative outlook for the pair. A break below the 38.2% Fibonacci retracement level could trigger further losses, potentially dragging the pair towards the 50% Fibo level.

On the other hand, if the USD/JPY pair manages to recover beyond the mid-145.00s, it could extend its gains. However, sellers are expected to emerge near the 146.00 round figure, limiting further upside potential.

In currency markets, the JPY performed weakest against the New Zealand Dollar in today's trading session, as indicated by the percentage change of Japanese Yen against major currencies.