Forex trading is a popular way of making money in the financial market. Forex traders can trade different currency pairs, including the Asian currency pairs. However, traders need to know the best time to trade these pairs to increase their chances of making profits. In this article, we will discuss when to trade Asian pairs in forex.
What are Asian Currency Pairs?
Asian currency pairs are currency pairs that include currencies of countries located in Asia. These currencies include the Japanese Yen (JPY), the Chinese Yuan (CNY), the Hong Kong Dollar (HKD), the Singapore Dollar (SGD), the Korean Won (KRW), and the Indian Rupee (INR). These pairs are heavily traded in the forex market due to the economic significance of the countries they represent.
When to Trade Asian Currency Pairs?
The best time to trade Asian currency pairs is when the Asian markets are open. The Asian market is the first financial market to open, and it starts with the Tokyo market. The Tokyo market opens at 7 pm EST and closes at 4 am EST. During this time, the JPY is the most active currency in the market. Therefore, traders who want to trade the JPY pairs should consider trading during this time.
The next Asian market to open is the Hong Kong and Singapore market. The Hong Kong market opens at 9 pm EST and closes at 4 am EST, while the Singapore market opens at 9 pm EST and closes at 5 am EST. During this time, the HKD and SGD pairs are the most active currency pairs. Traders who want to trade these pairs should consider trading during this time.
The last Asian market to open is the Shanghai market. The Shanghai market opens at 8 pm EST and closes at 3 am EST. During this time, the CNY is the most active currency in the market. Traders who want to trade the CNY pairs should consider trading during this time.
Trading Asian currency pairs during the Asian market hours can be challenging for traders who live in different time zones. However, traders can use different trading strategies to trade these pairs successfully.
Trading Strategies for Asian Currency Pairs
1. Trading the News
One of the most popular trading strategies for trading Asian currency pairs is trading the news. Asian economies are major players in the global economy. Therefore, any news that affects the Asian economies can have a significant impact on their currencies. Traders can use economic calendars to keep track of the economic news releases that affect these currencies.
2. Range Trading
Another trading strategy for Asian currency pairs is range trading. Range trading involves buying a currency pair at the bottom of the range and selling it at the top of the range. Traders can use technical indicators such as the RSI or Bollinger Bands to identify the overbought and oversold levels of the currency pairs.
3. Breakout Trading
Breakout trading is another popular trading strategy for Asian currency pairs. Breakout trading involves buying a currency pair when it breaks above a resistance level or selling it when it breaks below a support level. Traders can use technical indicators such as the MACD or Moving Averages to identify these levels.
Conclusion
In conclusion, trading Asian currency pairs can be profitable if traders know when to trade them. The best time to trade these pairs is during the Asian market hours when the Asian markets are open. Traders can use different trading strategies such as trading the news, range trading, and breakout trading to trade these pairs successfully. However, traders should also be aware of the risks involved and should always use proper risk management techniques to minimize their losses.
