Abstract：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.
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