Japanese Shares Fall as Tech Stocks WeighJapan 225 CashIG:NIKKEINouzTraderOn a macro level, looking at the H4 timeframe, the market structure is currently in a Bearish Transition phase (Pullback Phase). NIKKEI Following an impulsive rally from the lows that broke through to a local peak around 69,611.4, a sharp rejection occurred (double top rejection). The subsequent impulsive decline broke the minor Higher Low structure, placing the price in a medium-scale correction phase. At the 65,554.3 price level, H4 candle movements indicate a sideways consolidation phase, trading below the nearest local green Resistance line at approximately 66,852.1. Consecutive lower and upper wicks on recent candles signal a tight battle between buyers and sellers, though short-term control remains slightly dominated by selling pressure. ---------------------------------------------------------------------------------------------------------- ✅ Key Zones: - Resistance / Supply Zone: The 66,852.1 range (nearest green Resistance / SBR line) and the 67,600.0 – 69,611.4 range (upper boundary of the Major Supply Zone). - Support / Demand Zone: The 64,800.0 – 65,000.0 range (nearest local consolidation support area) and the 64,202.5 level (lower major green Demand line). ---------------------------------------------------------------------------------------------------------- ✅ Orderflow / Volume Profile (VPVR) Analysis The Volume Profile histogram on the right side of the chart provides a highly precise map of institutional liquidity: - 🔸Local High Volume Node (HVN) / Point of Control (POC): A significant volume accumulation is visible right around the current price range of 65,750.0 – 66,250.0 (indicated by the longest histogram protrusion). Since the current price (65,554.3) has slipped below this volume bulge, this HVN area is acting as Orderflow Resistance, capping upward movement. - 🔸Low Volume Node (LVN) / Downward Acceleration Zone: Below the 65,250.0 range, heading toward the green line at 64,202.5, the volume histogram appears thin (a "volume vacuum"). If sellers successfully break below the consolidation floor (below 65,000.0), the price is projected to slide rapidly across this LVN area toward the next significant volume cluster around 64,202.5. ---------------------------------------------------------------------------------------------------------- ✅ Elliott Wave Analysis Mapping wave cycle movements on the H4 timeframe: - 🔸Wave Structure: The sharp decline from the 69,611.4 peak toward the 65,000 level is calculated as the initial impulsive move of a large-scale corrective Wave A or Wave 1. - 🔸Current Status: The sideways consolidation at the 65,554.3 level is identified as the formation of Wave B (a micro flat or triangle correction) currently completing its supply-balancing phase. - 🔸Projection: Price action is projected to retain some remaining corrective downward momentum (Wave C / micro Wave 3) to test the green Support/Demand line at 64,202.5 before this H4 correction cycle reaches its exhaustion point (selling exhaustion).