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The engine is running at a higher RPM because the momentum of the car, causing the wheels to spin, which drives of the tranny, which turns the engine. The Engine has a higher resistance to spinning at higher RPMs hence engine braking.
Now, newer Toyota engines have a fuel cut at around 1400-1500 rpms. That means when the engine is spinning above that RPM, and you do not apply throttle, there is almost no gas going into the engine because it doesn't need anything to keep it running. I'm not sure if its in older Toyota engines, but I don't see it being too hard to be applied so it should be.
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