The yen fell on Thursday, giving up initial gains against the dollar as more market players took the view that the Japanese currency’s sharp rally in the last week to three-month highs may be running out of steam.

Investors are awaiting a U.S. payrolls report later this week for any weak figures that could further stoke expectations for the Fed to cut interest rates later this year, potentially sparking dollar selling against the yen. “If we get another weak number to indicate a slowdown in the U.S. economy, the current move to sell the dollar and unwind yen short positions could continue,” said Hideaki Inoue, chief manager of forex trading at Mitsubishi UFJ Trust and Banking Corp.

“The dollar has the potential to fall to 113 yen at the most before eventually rebounding,” Inoue said.

An economic derivatives auction on the February payrolls data, which enables traders to take positions on the potential outcome, indicated a market implied forecast of 93,100 jobs added in the month, below economists’ expectations for a 100,000 increase.

A separate report of U.S. private employers on Wednesday showed private sector jobs growth of 57,000, well below expectations.