How to trade forex during Asian hours – Guide

The Asian session is also known as the Tokyo session. This session is considered the best time to start forex trading. Asian trading sessions are often overlooked due to their liquidity and volatility compared to other trading sessions. However, for traders familiar with forex trading, they do offer some unique features. One of the most important features of the Asian session is that commercial banks and central banks are the main players in the market. This means that there is a high degree of liquidity and you can easily find buyers and sellers for your currency pair. Another important feature of the Asian session is that it’s typically a slower time than other sessions. This means that you can get more work done in this period of time and make better profits.

During Asian forex sessions, the liquidity can be small and currency pairs can stay within a certain range. This condition is very likely to occur when the New York session follows a big move. Compared to GBP/USD, movements will be stronger in Asian currency pairs such as NZD/USD and AUD/USD. This is because most of the activity during Asian trading sessions takes place in the early stages. After the Asian trading session, traders can predict the next market activity to start a successful trading journey. ..

How to Trade Forex during Asian trading hours

When trading during the Asian session, currency pairs are divided into three categories: major currencies, cross currency pairs (also known as crossovers), and exotic pairs. Major currency pairs for the Asian session include the US Dollar ($) – Japanese Yen (¥) or USD/JPY, Australian Dollar (A$) – US Dollar ($) or AUD/USD, and Kiwi Dollar (N$) – US dollar ($) or NZD/USD. The main currency pairs of the global FOREX markets, which also include the EURO – US Dollar, Pound Sterling – US Dollar, US Dollar – Swiss Franc and US Dollar – Canadian Dollar, represent more than 70% of the market turnover and are considered the most liquid and popular trading pairs. ..

The USD-JPY exchange rate is the most traded currency during the Asian session, accounting for nearly 20% of daily currency trading. In recent years, China’s influence has also increased, with markets paying more attention to the Chinese central bank (PBoC) and the Chinese yuan’s daily fixation rate. Any devaluation would raise concerns that the economy is weakening, which would negatively affect emerging Asian currencies.

Currency pairs include major currencies but exclude the US dollar. Asian currency pairs are AUD/CAD, AUD/CHF, AUD/JPY, AUD/NZD, GBP/JPY and NZD/JPY, with Japanese Yen pairs being the most popular during the Asian session. Exotics are currencies that belong to economies that have little or no impact on the global economy and have significantly lower trading volumes and therefore much lower liquidity. As a result, exotic currencies are much more volatile and are considered much riskier, as reflected in their wider bid and ask spreads.

Asian currencies are popular among traders because they offer a variety of options and are relatively liquid. For example, the Thai baht is traded against the US dollar, the Singapore dollar is traded against the British pound, the Philippine peso is traded against the Japanese yen, and the Malaysian ringgit is traded against the Chinese yuan. ..

Alpari is a top-tier foreign exchange broker that offers a fast execution environment, high liquidity, and low transaction fees. Additionally, Alpari offers all the necessary analytical tools a trader needs to make trading decisions and execute them on a daily basis.

Final note

This guide is designed to help you trade forex during Asian hours. If you have any questions about this article, please ask us. Additionally, please share your love by sharing this article with your friends.