Forex trading session is an essential part of succeeding in trading the forex market as during each forex trading session some pairs get to see more volatility than others. The Tokyo session is also known as the Asian forex session.
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.
The Asian session/Tokyo market starts at 11 p.m to 8 a.m GMT.
BEST PAIRS TO TRADE DURING TOKYO SESSION
According to babypips.com, more forex trading volume comes out of Singapore and Hong Kong than in Tokyo.
These are the best pairs to look out for during Tokyo session.
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ASIAN SESSION FOREX PAIRS
The Asian session covers the Tokyo and Sydney trading zone. Compared to other sessions the Asian session has the lowest liquidity.
You can find good liquidity in these pairs below during the Asian session
ASIAN SESSION FOREX TRADING STRATEGY
Many traders tend to avoid the Asian session due to its low liquidity, with a good market analysis you can catch the trend early enough.
One good forex trading strategy in the Asian session is to identify the dominant trend and wait for a breakout of the zone.
After identifying the trend on a higher timeframe, use a lower timeframe where the market is ranging and wait for a breakout of the ranging zone for entry.
BEST FOREX PAIRS TO TRADE DURING LONDON SESSION
The London session is one of the most active sessions as it accounts for about 35% of the total volume traded. When the London session overlaps with the New York session, there are high trading activities.
The London session runs from 7 a.m to 4 p.m GMT.
Below are some best forex pairs to trade during London session
During the London trading session, many traders use a breakout trading strategy to confirm their entry. Note that during this session there could be an increase in spread; this is why you may want to focus on major pairs for tighter spread.
BEST PAIRS TO TRADE DURING SYDNEY SESSION
The Sydney session comes at the end of the New York session and starts two hours before the Tokyo session. The session is not as active compared to the London and New York session; however, trades are still able to catch some pips out of it.
The Sydney session opens at 10 P.M GMT and closes at 7 A.M GMT
Below are some of the best pairs to trade during Sydney session
BEST PAIRS TO TRADE DURING LONDON AND NEW YORK SESSION OVERLAP
The London New York overlap session has the highest trading activity. It is anticipated by many traders as it has the most liquid period of the day.
The majority of the economic reports are released at the opening of the New York session and the US dollar accounts for about 85% of all trades; that being said the London and New York session overlaps has a wide range of trading pair.
MOST VOLATILE PAIRS DURING NEW YORK 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.
These listed pairs will be volatile during the New York session.
In my opinion, it is much safer to stay with the major pairs in the US session like
BEST CURRENCY PAIRS TO TRADE AT NIGHT
The best currency pairs to trade at Night are simply based on the trading session the Night falls on in your country. For example, if the Night-time in your country falls on the Asian session then you will be looking out for trading certain pairs that go with the trading session.
In this article, I have listed different pairs that go with their different trading sessions.
WHAT IS THE BEST TIME TO TRADE JPY PAIRS?
There are many sides to this as every trader trades differently; there are some traders that believe that JPY pairs are the best trade during the Asian session. Pairs like USDJPY usually have activity in the New York session and sometimes in a bullish move.
There is actually no best time to trade JPY pairs, one thing that does matter is a good market analysis before trade entry.
WHICH FOREX SESSION IS BEST FOR TRADING?
There is no best session for forex trading and this is why; to say there is a best forex session for trading is to mean that all other forex sessions are not as profitable, which is not true. Every forex trading session is unique and has its respective trading volume.
However, there are higher forex trading activities in the New York session for many reasons which are
1. Most economic reports are released in the New York trading session
2. The dollar is the most traded currency in the forex market.
WHAT IS THE BEST TIME TO TRADE NZDJPY?
This question is associated with traders trading on a lower timeframe, JPY falls in the Asian session, which doesn’t mean the best time to trade NZDJPY is in the Asian session. Looking out for a good market structure on the pair will give you a good entry which could be outside the Asian session.
WHICH FOREX SESSION IS MOST VOLATILE?
The most volatile forex session is the New York session, especially in the London New York overlap.
It is the most volatile because the dollar is the most traded currency and the release of the economic reports is mostly in the New York session.
WHY ARE GBP PAIRS SO VOLATILE?
GBP pairs are volatile because the countries they are paired with, operate on different economies compared to the United Kingdom.
When currencies from two different economies are merged there is going to be volatility. for example GBPJPY.