Asian Session Forex Pairs – Tokyo Session

Asian Session Forex Pairs – Tokyo Session

Are you interested in Asian Session Forex Pairs to boost your trading profits? If yes, it’s actually a great idea since trading these pairs has many advantages. Let’s look at what the Asian Forex Session is, what are the advantages of trading on it. Also we will see the best pairs to trade at the Tokyo Trading Session.

What Time is the Asian Session?

Traditionally, the Forex market is separated into three peak activity sessions. These are the Asian, European, and North American sessions. They are also referred to as the Tokyo, London, and New York sessions.

The Asian trading Forex session begins when the market opens in Tokyo at 00:00 GMT, which is 9:00 PM Eastern Time (ET). This session runs until 09:00 GMT (4:00 AM ET), overlapping for a brief period with the London session. Understanding this time zone is crucial for Forex trading. It determines the hours during which key Asian markets are most active and liquid.

Asian Session Forex Pairs – Fun Facts

For Forex traders in the US, trading sessions open on Sunday at 5.00 PM EST, 10.00 pm GMT.

But there still is not enough liquidity before the Asian session opens. The Asian trading session is generally referred to as the Tokyo session opening at 12.00 am GMT. 

It is one of the major trading sessions since Japan is the third-largest Forex trading center in the world. Also, the Yen holds third position when it comes to most traded currencies. It partakes in almost 17% of all Forex market transactions.

Overall, approximately 20% of all trading volume takes place during the Tokyo session. The other two major Forex centers in Asia are Hong Kong and Singapore. It’s with noting there is more trading volume in Hong Kong and Singapore than in Tokyo.

What is the Asian Session Range?

The Asian session range refers to the fluctuation range of currency pairs during the Asian trading session. Typically, this range is narrower compared to the ranges seen in the London and New York sessions. 

This is partly due to the overlap of the Asian session with the latter part of the North American session and the early hours of the European session.

The range is an important aspect for traders using strategies like range trading or breakout trading. Since the Asian session often experiences a consolidation of prices, it can set the stage for significant breakouts during the later sessions. 

Understanding the Asian session’s range provides Forex traders with insights into potential market fluctuations and helps in planning their trading strategies accordingly.

The Tokyo session overlaps with the London session at the end of the trading period. During this period, traders experience high liquidity levels, which result in breakouts from established trading ranges.

What Forex Pairs to Trade During the Asian Session?

When the Forex market opens in Asia, certain currency pairs become the primary focus for traders. The Asian trading session, predominantly influenced by the activities in major financial centers like Tokyo, offers unique opportunities for trading currencies. 

During this session, pairs that involve Asian currencies like the Japanese Yen (JPY), Australian Dollar (AUD), and New Zealand Dollar (NZD) often see increased trading volume. These pairs, coupled with major currencies like the USD and EUR, form some of the best Forex pairs to trade during the Asian session.

In addition to the regional pairs, the EUR/USD and GBP/USD also experience significant activity, although their movements are more pronounced during the London and New York sessions. 

Traders often focus on pairs like USD/JPY and AUD/USD, as these tend to respond 

Traders also pay attention to pairs involving the Chinese Yuan (CNY). 

Though it is less traded compared to other major currencies. Note that the liquidity and volatility of these pairs can be different from those during the European and North American sessions.more dynamically to the Asian markets’ economic indicators and news events.

Asian Session Forex Pairs FAQ

What are Asian Session Trading Hours?

The Asian Forex trading session starts at 00:00 GMT (9:00 PM ET) and ends at 09:00 GMT (4:00 AM ET), overlapping briefly with the London session. This period is crucial for trading as it marks the most active hours for key Asian markets.

What are the best Pairs for trading in Asian Sessions?

Popular pairs during the Asian session include JPY pairs like USD/JPY, EUR/JPY, and AUD/JPY, as well as AUD/USD and NZD/USD. These pairs are influenced by the economic activities in Asia, particularly in Japan, Australia, and New Zealand.

What are the best strategies for an Asian trading session?

Strategies for Asian Session Range: Traders often use strategies like range trading or breakout trading during the Asian session. The consolidation of prices in this session can lead to significant breakouts in subsequent sessions.

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