The forex market is a 24-hour market that operates five days a week. It is divided into four trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session has its own unique characteristics and trading opportunities. In this article, we will take a closer look at the market that is open now in forex.
The forex market is a decentralized market, which means that it is not controlled by any central authority. Instead, it is made up of a network of banks, financial institutions, and retail traders who trade currencies around the clock. This allows traders to take advantage of the market’s volatility and trade at any time of the day or night.
The market that is currently open in forex is the Tokyo session. This session starts at 12:00 AM GMT and ends at 9:00 AM GMT. The Tokyo session is also known as the Asian session and is the first major trading session of the day. It is followed by the London session, which starts at 8:00 AM GMT and ends at 5:00 PM GMT, and the New York session, which starts at 1:00 PM GMT and ends at 10:00 PM GMT.
The Tokyo session is known for its low volatility and liquidity compared to the other major trading sessions. This is because the majority of the trading activity during this session is focused on the Japanese yen. The Japanese yen is the third most traded currency in the world, and it is often used as a safe-haven currency by investors during times of economic uncertainty. This means that the yen tends to be more stable than other currencies during market turbulence, which leads to lower volatility in the Tokyo session.
However, despite its lower volatility, the Tokyo session still offers plenty of trading opportunities. One of the main advantages of trading during the Tokyo session is that it overlaps with the Sydney session, which creates a two-hour window of increased trading activity. This overlap occurs between 12:00 AM GMT and 2:00 AM GMT and is often referred to as the “Tokyo-Sydney” session.
During this overlap, traders can take advantage of increased liquidity and volatility in the AUD/JPY and NZD/JPY currency pairs, which are popular among traders in the Asia-Pacific region. The Tokyo-Sydney session is also a good time to trade the USD/JPY pair, which is one of the most traded currency pairs in the world.
Another advantage of trading during the Tokyo session is that it allows traders to take advantage of news releases and economic data releases from Japan. Japan is the third-largest economy in the world, and its economic data can have a significant impact on the value of its currency. Traders can use this information to make informed trading decisions and take advantage of market movements.
In conclusion, the market that is open now in forex is the Tokyo session. This session is known for its lower volatility and liquidity compared to the other major trading sessions, but it still offers plenty of trading opportunities. Traders can take advantage of the Tokyo-Sydney overlap to trade the AUD/JPY and NZD/JPY currency pairs, as well as the USD/JPY pair. They can also use economic data releases from Japan to make informed trading decisions.
