The USD/JPY bullish breakout could confirm a potential wave 3 (purple) impulse towards the Fibonacci targets of wave 5 vs 1+3. In that case price will continue higher within the uptrend channel. However, a bearish breakout below the support (blue) of the bullish channel could indicate failure of the uptrend and potentially a larger reversal.
The USD/JPY seems to have completed a leading diagonal for wave 1 (blue). A pullback could therefore be part of a wave 2 (blue) as long as price stays above the 100% Fibonacci level. A break below the bottom could indicate a deeper wave 2 (purple) if price manages to bounce at the 88.6% Fibonacci level at 110.56.