USD/JPY closed higher due to profit taking on Thursday as it consolidated some of the late-May decline. Unless it closes above the 20-day moving average crossing it appears as though it might be forming a bear flag, which would suggest additional loss later this spring. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends last week's decline, this month's low crossing is the next downside target.