Trading the Tokyo Session: A Guide for Forex Traders

The chart below shows this effect with the Asian session depicted in the smaller, blue boxes, while the London session and US session are depicted in the larger red boxes. If you live in Europe or the US and you want to trade during the night you will trade during the Asian session. The most volatile pairs during the New York session are pairs that have USD paired together, especially if the paired currency is weaker than the dollar. CAD/USD – The CAD/USD is one of the largest currency crosses and offers a lot of liquidity during the Tokyo trading session.

However, being a decentralized market, the Forex market has no rigid trading hours. Train yourself to stick to the plan, once the decision is made do not change it. Let that stop loss you have set according to your strategy be triggered if it has to. Train your discipline, if you have found the best currency pairs to trade with your plan, then always be ready to apply that plan. This strategy that you made is your Forex bible that will help you clear emotional swings. We hope this guide provides you with useful information about the Sydney Forex session and currency pairs traded in the session.

tokyo session forex pairs

You could use the H1 to clearly mark the Asian session range and then an M15 chart for entries and trade management. Otherwise known as a London breakout Forex strategy, it involves taking advantage of a breakout of the current day’s range. Levels of support and resistance assist traders with opportunities to enter or exit trades.

Table of Best Currency Pairs with Ranges

It moves in the same pattern as you trade other best currency pairs. There is only a need for observing the high volatility and liquidity of these pairs. In forex trading, a trader will buy or sell any one of these currency pairs in the hope that the value will be changed against others. Asian trading session is not as liquid and volatile as other major sessions, however, it remains highly popular, because Japan is the third-largest Forex trading center in the world. The yen is the third most traded currency, which volume is participating in almost 17% of all Forex transactions.

We believe that versatile financial services require versatility in thinking and a unified policy of business principles. The good news is that these disadvantages are easily cured by a well-structured Forex trading course, discipline and no small amount of practice. The fact that the Forex market never sleeps means it’s easy to overtrade.

It is best to avoid the non-Asian currency pairs since low liquidity and lack of opportunities cause high spreads. The NZD/JPY and the AUD/JPY are the best options for people who wish to diversify their trading portfolios. However, both pairs provide an opportunity for skilled traders who understand the nature of volatility and liquidity.

In this article we will provide more exact times to be in front of the computer to maximize potential for price movement and how to efficiently monitor the forex market for trades. Traders will be able to know the best times times for the most possible pip potential. Generally, the Tokyo or Asian forex session has low liquidity and volatility compared to other forex trading sessions. However with experience and a good trading strategy traders still know the best pairs to trade during Tokyo session. Even if some brokers allow trading during the weekends, the prices of various currency pairs hardly move on Saturday and Sunday.

Our aim is to make our content provide you with a positive ROI from the get-go, without handing over any money for another overpriced course ever again. We are sharing premium-grade trading knowledge to help you unlock your trading potential for free. The busiest time of the day for this session is 10 pm to 2 am in winter. The Sydney & Tokyo how to choose sdlc model for a project Forex session is not as volatile as the US/London overlap but still offers an opportunity to trade. This pair indicates how many US dollars you need to get an Australian dollar and what the exchange rate is. This pair shows the exchange rate between the Japanese Yen and US Dollar, dictating how many Yen you need to buy one dollar.

tokyo session forex pairs

This trading currency pair is no doubt gaining less popularity against USD/JPY but has a prominent position in the forex market. Both currencies are connected and a trader can trade successfully on this trading platform. The main feature of USD/JPY is the interest rate of both currencies. You can check the risk rate with interest when you are buying or selling these currency pairs. Here are the final words of the best currency pairs traded in the Sydney Session. As a trader, you must be aware of the currency pairs that provide you big rewards with low risks.

As the New York session traders are getting to the market, the Asians are getting out preparing for bed. It should also be considered that the market’s opening time can be subjective as forex markets trade 24 hours a day. However, in general, it is believed that the Asian session starts when Tokyo banks start operating because of the huge amount of trades they deal in.

The Best Forex Pair to Trade during the Asian Session

There are several Forex pairs you can choose to trade during the Sydney session, the most common of which are AUD/NZD, USD/CHF, AUD/JPY, GBP/USD, EUR/USD, and USD/JPY. Moves in the Tokyo session could set the tone for the rest of the day. Traders in latter sessions will look at what happened during the Tokyo session to help organize and evaluate what strategies to take in other sessions. There will be times when trading during this period will be like fishing – you might have to wait a long, long time before getting a nibble.


Read more about the most traded currency pairs​ around the world. Since there are fewer sellers and buyers in the market, abnormally large buy or sell orders can substantially impact the prices. Notably, recent flash crashes in the forex market have occurred during the Sydney session. The trading volume increases during the overlaps because there is increased demand for Foreign Exchange when most international markets are active. Approximately 42% of the daily forex turnover is traded during the London session. That is why London is called the forex trading capital of the world.

During these hours, the best option is to make pairs with the Japanese Yen currency . Depending on the strategy that the trader wants to use, they will find more profit pairing with Australian dollars , New Zeland dollars , and Singapore dollars . If you select most trading pairs like EUR/CHF, NZD/USD, AUD/USD, and GBP/JPY you can easily move ahead in the forex trading market while trading in the Tokyo session. As soon as you select this pair of currency, you have to be attentive and keep focusing on the market conditions.

This is why traders should find favourable movement in currencies at any time as compared to other sessions. The main market participants during the Tokyo session are commercial companies and central banks. Remember, Japan’s economy is heavily export-dependent, and, with China also being a major trade player, there are a lot of transactions taking place on a daily basis. It is important to figure out the best trading pairs of any trading session. There are several trading sessions that you have to choose from before trading.

How to Read and Understand Forex Trading Signals

Also, the first to start the trade and which are financial centers are Australia, Sydney, and New Zealand. There are many currency pairs that you can select while trading Sydney sessions in the forex market. The best currency pairs to trade during the Tokyo session will depend on the individual trader and strategy employed. Traders looking for volatility will tend to trade Japanese Yen, Singapore dollar, Australian dollar and New Zealand dollar crosses. This article will walk through the nuances of this trading period – listing the Tokyo forex market hours and providing ideas and strategies for traders to consider when ‘Trading Tokyo’.

Determining the best currency pair to trade during the Tokyo session can be difficult. All pairs provided above offer unique characteristics that suit different types of traders. However, the best pair is that most people prefer JPY/USD due to the high volumes, especially during the Asian trading session. It provides Breakout opportunities at the End- The Tokyo session overlaps with the London session at the end of the trading period.

This provides opportunities for short day trades or potential breakout trades later in the day. On a small timeframe (five – 30-minute chart) traders can wait to see a candle close above or below the trading range witnessed in the Asian session. If price breaks below the range, traders can enter the trade placing a tight stop at the recent swing high. One way to trade ranges is to look for sell signals when price trades near resistance while setting an initial take profit level near the bottom of the range. Traders will often enlist the help of oscillators such as the RSI and Stochastic indicators to provide buy and sell signals.

The Tokyo session provides the optimal time to trade since it offers high liquidity. Therefore, it is important to identify the periods when volatility is high. Every forex trading session is unique and has its respective trading volume. The performance of currency pairs used during the Tokyo session depends on trading plans and individual traders. To gain volatility, traders like to trade with currency pairs that cross with Singapore dollar, Japanese Yen, Australian, and New Zealand dollar. Sydney session has a number of currency pairs that provide you with easy ways to get rewards without facing risks.

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All these drivers emerge during specific country/currency daytime. Forex market operates 24 hours a day, 5 days per week, across four different sessions with different trading hours. For example, the GBP/USD and EUR/USD pairs are the most active during the New York and London session overlap, showing high liquidity and volatility.

Let’s take a look at three major Forex market hour-based strategies you can apply today to improve your win rate and increase profitability. We recommend that you seek independent financial advice and ensure you fully understand the risks involved before trading. There are other major financial centers in Asia such as Singapore and Hong Kong.