Chart alert: Nikkei 225 bullish run is facing minor exhaustion below 64,145

The Nikkei 225 has reached a record high of 63,788, primarily driven by technology stocks like SoftBank Group and Murata Manufacturing. However, technical indicators suggest a potential near-term corrective pullback below the 64,145 resistance level, with a bearish "Head & Shoulders" pattern emerging. Momentum indicators indicate exhaustion in the recent bullish trend, raising the likelihood of a retracement towards support levels at 61,945 and lower. This analysis follows a previous report on the Nikkei's bullish reversal.

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.