USD/JPY closed higher on Wednesday as it consolidated some of last week's decline. The mid-range close sets the stage for a steady to higher opening on Thursday. 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, the reaction low crossing is the next downside target. Closes above the reaction high crossing would temper the near-term friendly outlook.