USD/JPY closed higher on Wednesday ending a two-day short covering bounce. The high-range close sets the stage for a steady to higher opening on Thursday. At the same time, stochastics and the RSI are turning neutral to bearish signalling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing are needed to confirm that a short-term high has been posted. If it resumes the rally off November's low, the 62% retracement level crossing is the next upside target.