I think the free arm shoulder should move up a little when inhaling is nearing it's peak, the other shoulder should not move as a result of breathing since it is under tension. A quick edit to show what I mean:
Awesome illustration of breathing!
Indeed!
Great updates to your creature momo! I think your shading is great so far! I was going to suggest that you could have things like flowing hair that sways with your up and down movement. Then I thought your shading seemed kinda complicated to do attempt that (at least it would be for me lol). So I looked up how the professionals do it!
http://www.fightersgeneration.com/characters3/sabretooth-a.htmlTurns out Marvel vs Capcom sprites have fairly simple shading! That's something to keep in mind when animating.
I would give the creature an ear twitching and a slight bending to the knees while it breathes. Another awesome, simple additional, I think, would be to add his mouth open and close a little bit while breathing. Or have his nose flare like he's inhaling and exhaling. I really like this character! Keep up the good work!