USD/JPY closed lower due to short covering on Thursday as it consolidates some of last week's rally. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are turning neutral to bearish signalling that sideways to lower prices are possible near-term. If it renews the decline off May's high, last November's low crossing is the next downside target. Multiple closes above the 20-day moving average crossing would confirm that a short-term low has been posted.