I think it's possible, though unlikely that things could have gone better. If Japan felt better treated at Versailles and in the Washington Naval Treaty some major causes for antipathy would be removed. In theory then Japan and US/UK might be able to negotiate better diplomatically. Japan would still feel the need to better arm itself relative to the West, but might not be quite as militant. Japan would definitely still get involved in China and Manchuria, but it's POSSIBLE (though unlikely) that involvement could be done in such a way as to not invoke strong Western opposition. For instance, Japan might limit its areas of operation, might ensure that there were clearer 'reasons' for their actions, and avoid wanton bloodshed. While this seems unlikely for the (now infamous) Japanese Army, they might have restrained themselves if there was clear benefit (in terms of avoiding embargoes and such). Likewise, it might seem unlikely that the US/UK wouldn't object, but when you consider the concessions made to Hitler, it's not completely unreasonable. All of this might limit Japanese involvement in China to certain areas, while they still establish Manchukuo. Then, as they want more resources, they might again limit their objectives and just attack the Dutch. While this would piss off the US/UK, the UK (busily engaged with Germany and outgunned in the Pacific) isn't likely to go to war over it and the US (otherwise at peace and without allies) isn't going to either.
Of course, all of this assumes that Japan doesn't make a treaty with Germany either.