USD/JPY technical analysis: Off session highs, teasing inverse head-and-shoulders breakout

• USD/JPY has created an inverse head-and-shoulders pattern. 
• The daily chart also shows a bearish channel breakout. 

USD/JPY pair is currently trading at 108.40, having hit a high of 108.59 earlier today. The pullback from session highs could be associated with the risk-off tone in the Asian equity markets. 

On the daily chart, the currency pair seems to have created an inverse head-and-shoulders pattern with the neckline resistance at 108.44.  A daily close above that level would confirm the breakout and create room for a rally to 110.10 (target as per the measured move method). 

An inverse head-and-shoulders breakout looks likely as the path of least resistance is to the higher side - the pair confirmed a bearish channel breakout on Friday with a 0.60% rise. 

Daily chart

Trend: Bullish above 108.44.

Pivot points