Tokyo Session Forex Pairs

tokyo trading session

Such combinations like USD/JPY, AUD/JPY, EUR/JPY, NZD/USD, and NZD/JPY can be handy. For investors aiming for extreme volatility in the forex market during the Tokyo session, these options are preferable. Investors that prefer less volatility can trade in currency pairs like EUR/USD, USD/CHF, and others that are not now in the working hours. However, some traders are preparing to take action in anticipation of a breakout before the session closes. When you first came to know about the global currency market, you probably came in touch with marketing materials claiming that this market remains open 24 hours a day and seven days a week. Anyone who traded equities (stocks) or any other commodities knows that stock exchanges or other markets are usually open during banking hours in a day.

tokyo trading session

Currency Pairs that involve JPY, like GBP/JPY and EUR/JPY, often experience high volatility during this period, but the spread will likely be wide. The volatility is often due to the release of important macroeconomic data and news from the Asian Pacific countries. It is also expected that traders from these countries will likely use their domestic currencies in most of their trades. Consolidation is when the price moves in a narrow range until there is a breakout.

Forex market hours: What time does the forex market open?

To facilitate trading across these different time zones, the forex market uses Coordinated Universal Time (UTC), also known as Greenwich Mean Time (GMT), as its standard reference time. I hope this lesson has shed some light on the subject of Forex market hours as well as the various market sessions that make up a 24 hour period. This overlap occurs when the Tokyo session is about to close and the London session is about to open. This overlap occurs when the Tokyo session is about to close and the Sydney session is about to open. The London session is the third trading session of the day and is considered to be the most active of the four sessions. This session is dominated by the British pound (GBP), the euro (EUR), and the Swiss franc (CHF).

There is even a famous strategy called ‘London Breakout’ that is related purely to the open of the European session and may allow to take advantage from the fast directional movement. These names could be interchanged due to the fact that the mentioned above cities simply represent the major financial capitals for each of the region. The basic point is that markets start being active are going into their local business hours. It is also accompanied by the fact that the majority of banks and other financial institutions start making their daily operations.

Strategy for trading during the Asian session

Please note that in the middle of the European trading session, market volatility tends to decrease. The reason for this may be that tokyo trading session at this time, traders take a break for lunch. Traders can also wait for the start of the new York session to revive trading.

Your time zone and availability will also determine the best assets for you to trade. For instance, if you are available to trade from 0800hrs GMT to 1200hrs GMT (during the London session), you are better off trading EUR and GBP pairs. However, the market open or close times may be altered due to a lack of liquidity or pricing updates. Traders with open positions over weekends should be aware that these positions are susceptible to additional risk when significant events occur during the market closure.

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