Yes, that is the caveat. You will now only have 130,000 yen worth of points (about US$ 1200), and cannot redeem;
-any ticket for anything of more value (that JFK-MXP business class costs way more than this amount).
-any JAL partner ticket (only JAL flights allowed)
So, I suggest you make a decision now on what award travel you want to do end of the year or early next year, and book an award ticket.
worst case scenario, you can still change the ticket next year to a later date by just paying $30 in change fees (need to keep the same route and partners).
Tokyo-Sydney/Melbourne for F1 race or Tennis grand-slam etc. would be my immediate focus.
If you are not in this side of the world, then look to redeem on QR US-Doha-Bangkok in business class return for 130,000 miles!