Nikkei: Japanese Stocks Rise Following Nvidia's Earnings ReportJapan 225 CashIG:NIKKEINouzTraderNikkei: NIKKEI Japanese Stocks Rise Following Nvidia's Earnings Report The benchmark Nikkei 225 index surged 0.3% to break past the 66,400 level, while the broader Topix index climbed 0.25% to reach 4,121. This rally was driven by a surge in market optimism following the release of record-breaking "blowout" earnings and sales guidance from global AI giant Nvidia. "Smart money" in Asia-Pacific absorbed the US inflation data (July PCE)—which remained elevated above the Fed's target—by focusing on the far more powerful fundamental momentum within the physical computing supply chain. Nvidia's success in posting blowout Q2 earnings—with revenue soaring over 100% year-on-year and Q3 sales guidance exceeding even the highest estimates—demonstrated that the market is fully absorbing the 15%+ price hikes for AI servers. This triggered a massive buying spree for Japanese manufacturers of fiber-optic cables, memory chips, and passive components—the backbone of global data center construction: Kioxia Holdings surged 5.0%, Fujikura rose 2.6%, Murata Manufacturing gained 2.6%, Ibiden Co. climbed 2.3%, and Tokyo Electron rose 1.0%. ------------------------------------------------------------------ ✅ Price Action Analysis (H4 Timeframe) ⚡Market Structure & Channel Breakout: The H4 structure shows that the previous ascending channel was broken decisively to the downside from the peak of 69,611.4. Following that vertical drop, the price entered a consolidation or range-bound phase within the central gray box. ⚡Current Price Action: At the 66,193.1 price level, the latest H4 candle shows sharp rejection after briefly triggering a false breakout (fakeout/upthrust) above the green line at 66,852.1. The appearance of a large-bodied bearish candle re-entering the consolidation range confirms a "stop hunt" (sweeping of buy-stop liquidity) by institutional market participants before driving the price back down. ⚡Key Zones: - Resistance / Supply Zone: The 66,852.1 range (green line: nearest Upthrust Level / SBR) and the 67,600.0 – 69,611.4 range (upper Major Supply Zone area). - Support / Demand Zone: The 64,925.9 range (green line: nearest Pivot Level / consolidation floor) and the 62,003.9 range (green line: lower Major Demand Area). ------------------------------------------------------------------ ✅ Elliott Wave Analysis Mapping wave cycle movements on the H4 timeframe: ⚡Wave Structure: The sharp decline from the 69,611.4 peak toward the consolidation area is calculated as the initial impulsive move of a large-scale corrective Wave A or Wave 1. ⚡Current Status: Sideways consolidation with a "fakeout" to 66,852.1 is identified as the completion of Wave B (a micro expanded flat correction) that has just swept liquidity at the upper boundary. ⚡Projection: Rejection from this Upthrust area triggers the start of a downward expansion in Wave C / micro Wave 3. The primary downside targets for this wave are testing the Pivot Level floor (64,925.9) and subsequently sliding toward the lowest Demand Area (62,003.9).