USD/JPY closed lower due to long covering on Tuesday as it consolidates some of the rally off March's low. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends last month's rally, last August's high crossing is the next upside target. Closes below the 20-day moving average crossing would confirm that a long-term high has been posted.