Having that the Tokyo session at 12:00 AM GMT signifies the start of the Asian session; the Tokyo session is sometimes also called the Asian session because Tokyo is the financial capital of Asia.
In total, about 21% of all forex transactions take place during this session.
It is important to also note that Japan is the third largest forex trading center in the world and this isn’t strange because the yen is the third most traded currency, making up 16.50% of all forex transactions.
Below is a table of the Asian session pip ranges of the major currency pairs.
These pip values were derived based on averages of past data, and these values not constant values and can change depending on liquidity and other market conditions.
Also, note that the session range for EUR/CHF has not been included since the Swiss franc has been pegged to the euro at 1.2000 during the period.
Here are some important features that you should note about the Tokyo session:
PAIRS YOU SHOULD TRADE
Since the Tokyo session is heralded with news from Australia, New Zealand, and Japan, there is usually a good opportunity to trade news events.
In addition, there could be more movement in yen pairs because as Japanese companies transact, a lot of yen change hands.
Since Japan and Australia depend greatly on Chinese demand, we could see stronger movement in AUD and JPY pairs when Chinese data comes in.
Also remember that news from China in most cases, brings about volatile moves because China is also an economic superpower.
Now let’s check out how you can trade the London session in the next course.