USD/JPY closed higher due to short covering on Monday as it consolidated some of this week's decline. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible near-term. If it extends this week's rally, the reaction 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.