CAD/JPY Is Moving within a Relatively Wide Range

CAD/JPY has been consolidating sideways for two months now, ever since the pair reached the resistance at 88.91 and could not break above that level. The pair has been moving within a well-defined and relatively broad range which is most visible on the daily time-frame. It appears that the range continues for now, because CAD/JPY reached the resistance at 87.72 and formed a clear shooting star candlestick on the daily time-frame, which is a signal for a new move to the downside. If that signal is valid we will likely see a drop towards the first support at 86.30, and a breakout below that level will probably lead to a further move to the downside towards 84.75, which coincides with the (MA)89 on the daily time-frame.