However, Asian currencies tend to move a lot during Asian business hours, so there are Forex opportunities for traders located in Asia even without getting up to trade in the night. It is also quite possible to use many retail Forex broker’s trading platforms for automated trading, where the trader sets the rules for trades which can then be executed at whatever times trade setups may occur. As it is possible to trade all currencies around the clock, the best currency pairs to trade at night depend on the individual risk tolerance of the trader and their preferred trading strategy. Trading forex overnight presents opportunities for both long-term investment strategies as well as short-term strategies like scalping. So, to sum it up, traders looking for increased volatility during the Asian trading hours should be looking to trade economic data releases, during central bank member speeches and in the overlaps between sessions.
Hence, the pricing of pairs with AUD and JPY depends on the processes running within this powerhouse. Once the London session begins, traders might leverage a bold movement to their advantage. Trading on that hour with EUR/JPY , AUD/EUR, and GBP/JPY offers fantastic prospects for those that prefer volatility in their trades. A stochastic indicator helps in identifying where a market’s trend may be ending. It determines where the closing price of a currency pair in relation to a specified price range over time. To see the average pip movement for specific currency pairs in real-time, you can use our MarketMilk™ tool.
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Forex traders should also watch out for news releases from central banks and statistics agencies in Australia, New Zealand, and Japan. Forex trading operates 24 hours a day, five days a week, and is divided into four major trading sessions. Each session has unique characteristics and forex pairs that are traded during that time. Traders who focus on a particular session should be aware of the forex pairs that are traded during that time, as well as the economic data releases and news events that can impact those pairs. The New York session opens at 1300hrs GMT, while the London session is still running. The New York session also features high activity, especially during the early hours when it overlaps with the open London session.
- Range trading relies on the assumption that price fluctuates between support and resistance, and once it reaches the top value within the range, it is supposed to fall back.
- This pair is heavily influenced by news and economic data from Canada and the United States, which are major trading partners in the region.
- The end of the New York session has no overlap, closing right when the Sydney session starts.
- If there is no restriction though, the general consensus is that the best time to trade is when the different trading sessions overlap.
The Tokyo session average volatility is lower than the London and New York sessions. It creates tremendous trading advantages, ideal for scalpers, short-term traders, and high-frequency traders. Those looking to employ longer-term strategies may also consider an early entry by trading at night.
European Session (London)
Consolidation is when the price moves in a narrow range until there is a breakout. Traders often look forward to trading breakouts at the end of the Tokyo session. The Tokyo session is open from midnight to 9am ET, which makes it one of the most active Forex trading sessions. Volume and volatility during power hours work like tokyo session forex pairs gasoline and a spark of fire. While some investors fear market volatility because of the increased risk, forex traders generally prefer greater volatility because they have the potential to earn higher profits. Forex market operates 24 hours a day, 5 days per week, across four different sessions with different trading hours.
What forex pairs to trade during Tokyo session?
Asian Session Forex Pairs with excellent volatility and well-formed trends are AUD/NZD, AUD/JPY, NZD/JPY, USDJPY, AUDUSD, USDSGD, and NZDUSD. You can trade USDJPY, AUDUSD, and NZDUSD Asia session major pairs using a range strategy.