USD/JPY closed lower due to short covering on Tuesday as it consolidates some of last week's rally. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are turning neutral to bearish signalling that sideways to lower prices are possible near-term. Closes below the 10-day moving average crossing would temper the near-term bullish outlook. If it renews last week's rally, the reaction high crossing is the next upside target.