Summary

• Nikkei 225 continued its strong rally to a fresh record high of 63,788, driven largely by technology-related heavyweights such as SoftBank Group and Murata Manufacturing.
• Despite the broader medium-term bullish trend remaining intact, technical indicators now suggest a near-term corrective pullback risk below the 64,145 resistance level, supported by a developing bearish "Head & Shoulders" pattern.
• Momentum conditions have weakened as hourly RSI bearish divergence and Elliott Wave/Fibonacci analysis point to exhaustion in the recent five-wave bullish impulsive sequence, increasing the probability of a short-term retracement toward 61,945 and lower support zones.

By Kelvin Wong

The price actions of the Japan 225 CFD index (a proxy of the Nikkei 225 index futures) have rallied as expected in the past four weeks and surpassed the 62,044 level, as highlighted in our

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