The Asian forex session is also known as the Tokyo session, as it is centered around the trading hours of the Tokyo Stock Exchange. This session is the first to open in the forex market, and it is a significant contributor to the overall trading volume of the market.
The Asian forex session begins at 7:00 PM EST on Sunday evening and ends at 4:00 AM EST on Monday morning. This timing is due to the time difference between the Eastern Standard Time (EST) and the time in Tokyo, Japan. Tokyo is 14 hours ahead of EST, so when it is 7:00 PM EST on Sunday, it is already 9:00 AM on Monday in Tokyo.
During the Asian forex session, the major financial centers in the region are active, including Tokyo, Hong Kong, Singapore, and Sydney. These centers account for a significant portion of the trading volume in the forex market, and their participation in the market can have a significant impact on currency exchange rates.
The most actively traded currency pairs during the Asian forex session are those involving the Japanese yen, such as USD/JPY, EUR/JPY, and AUD/JPY. Other major currency pairs, such as EUR/USD and GBP/USD, are also traded during this session, but their trading volume tends to be lower compared to the yen crosses.
The Asian forex session is known for its volatility, as news and economic events from the region can cause significant movements in currency exchange rates. The release of economic data from Japan, such as GDP, inflation, and employment figures, can have a significant impact on the value of the yen and other currencies. Traders should be aware of these events and their potential impact on the market when trading during the Asian forex session.
One of the advantages of trading during the Asian forex session is the lower volatility compared to other sessions. This can be beneficial for traders who prefer a more stable trading environment and are looking for opportunities to make small, consistent profits. However, the lower volatility also means that there may be fewer trading opportunities during this session compared to the more volatile European and North American sessions.
In conclusion, the Asian forex session begins at 7:00 PM EST on Sunday evening and ends at 4:00 AM EST on Monday morning. This session is known for its volatility, with the most actively traded currency pairs involving the Japanese yen. Traders should be aware of news and economic events from the region that can impact the market and take advantage of the lower volatility to make small, consistent profits.
