USD/JPY closed lower due to short covering on Thursday as it consolidated some of the rally off last week's low. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI remain bullish hinting that a short-term bottom might be in or is near. Closes above Monday's high crossing are needed to confirm that a short-term bottom has been posted. If it renews last week's decline, November's low crossing is the next downside target.