SELL JP225 – 56840

The entry at 56840 targets a clear bearish setup: the Asian session produced a false break above recent highs, immediately retested the level and formed an equal‑high‑low sweep, indicating supply dominance. High volume on the reversal confirms conviction, while the multi‑timeframe analysis (H4 and higher) aligns bearish, and OBV shows divergence, flagging weakening buying pressure. Structurally, the stop loss sits just above the swing high at 56990, respecting market structure. On the fundamental side, Japan’s post‑election political stability and the upcoming BOJ‑Prime Minister meeting raise expectations of a yen rally and possible rate hikes, which typically compress export‑driven equities like the Nikkei. The combination of strong technical rejection and a macro backdrop that favours a stronger yen creates a high‑confidence bearish case for the index.