USD/JPY closed higher on Monday as it extended last week's rally. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. Closes above last Wednesday's high crossing are needed to confirm that a short-term bottom has been posted. If it renews the decline off January's high, the 62% retracement level of the November-January rally crossing is the next downside target.