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USD/JPY closed lower due to short covering on Wednesday and the mid-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are bullish signalling that a short-term bottom might be in or is near. Closes above the reaction high crossing would confirm that a short-term bottom has been posted. If it renews the decline off January's high, December's low crossing is the next downside target.