USD/JPY closed lower due to short covering on Monday as it consolidated some of last week rally. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible near-term. However, today's close above the 10-day moving average crossing tempers the near-term bearish outlook. If it renews last week's rally, July's high crossing is the next upside target.