- PPF Points
- 2,039
The Tokyo session is a better bet for you in the forex market, if you choose to trade in a more confined, less chaotic setting. It is the kickoff session of the trading day that greatly influences the mood of the market, mainly after the weekend or significant news issues. As the trading day progresses through this session, liquidity will be entering the market again, and although it is not as rambunctious as London or New York, it still presents neat, regular fluctuations sought by many traders. Such currency pairs as USD/JPY, AUD/JPY, and NZD/JPY exert a more profound effect during this period, partly because of the important role that Japan plays in the Asian markets and its heavy economic interconnectedness with the other two countries. The Tokyo session is the real deal for those who are in favor of slow, deliberate price action and usually forms straightforward ranges and easy-to-discern patterns suitable for the range traders and the scalpers. Besides, it is the best time for the preparation of trades for later in the day as breaks from the Tokyo session are mostly the ones that lead to the strongest moves during the London or New York overlaps. The session is characterized by data on economic performance emanating from Japan and Australia, so if you are aware of the news cycles, it would be a great advantage to you. It can be wise to trade during this less exciting time too as it could help you build your character in terms of patience and discipline with the market's noise and emotional outburst being reduced. In case you are someone who is more into a calm pace, precise entries, and good market analysis without a lot of volatility, then the Tokyo session may provide an excellent window for you to carry out your trades.
