AUD/JPY Price Analysis: Inverse Head & Shoulders taking shape

• AUD/JPY bulls are in charge and the price could be o the verge of a breakout. 
• The bullish engulfing ad the prospects of an inverse H&S are in focus. 

AUD/JPY has benefitted of late from a return of risk appetite in global financial markets. The price action has seen a daily bullish engulfing candle followed by a break of the prior highs which leaves the bulls in good stead for continuation to break the daily trendline resistance. 

AUD/JPY daily chart

As illustrated, the price has been in a descending channel for a relatively good length of time with multiple tests of either side of the bearish dynamic range. A breakout could be imminent one way or the other. The formation of what looks to be a bullish inverse Head & Shoulders pattern could be the final stags of this bearish channel.