Forex currency trading guides for beginners - The Tokyo trading session
The Tokyo Trading Session - An Overview
The Tokyo trading session is sometimes known as the ASian session. The session starts at 7pm EST is the start of the forex day. It is important to know that the Tokyo trading session can have an impact on the rest of the forex trading day.
Find below some important factors you should keep in mind about the Tokyo trading session as a beginner.
- The major players in the Tokyo trading session are the commercial institutions and central banks.
- Liquidity during this session can be on the low side. It is common to have very slow trading periods. You'll have to be patient to see any price movements during this period.
- It is more common to see price movements in the Asia Pacific currency pairings such as AUD/USD and NZD/USD than currency pairs like GBP/USD.
- When liquidity is low, it is most likely that currency pairs will stay within a certain range. This gives the chance of short day trades.
- Most of the trading volume occurs early in the session. This is when most of the economic data is released.
- What happens during the Asian session could give an indication of what is to come in the other sessions.
- It is common that, when there are large movements during the preceeding New York session, the market tends consolidate during the Asian session.
In conclusion, the Asian session is when news from the Asian-Pacific "majors (JPY, AUD, NZD)" come out. And beware that china is an economic giant so economic news from China can make the market volatile. The AUD and JPY could ract to news from China as these two countries depend heavily on Chinese demands for their exports.
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