The Bullish CAD/JPY Trend Is Stalling

CAD/JPY has been steadily moving to the upside for the month or so, ever since it formed an impressive hammer candlestick on the weekly time-frame above the support at 74.80 and it even eventually broke above the strong resistance at 0.8550, which coincided with the (MA)89 indicator on the same time-frame. It appears, however, that the overall bullish trend might be getting exhausted, or that at the very least there will be some retracement to the downside. The pair reached the resistance at 88.50 and stalled there, forming a clear shooting star candlestick on the daily time-frame. If this candlestick is a valid signal then there will likely be a move to the downside towards the closest level of support at 87.30 and a breakout below that level would likely lead to a further drop towards 86.00.