The Asian session — often called the Tokyo session — is one of the three main trading periods that make up the 24-hour foreign exchange market. It’s the first of the major regional sessions to open after the weekend and is defined by the trading hours of financial centres across Asia and the Pacific: Tokyo, Sydney, Hong Kong, Singapore and other markets in the region. For many traders, understanding the Asian session is useful because its rhythm, liquidity and typical price behaviour are different from the London and New York periods that follow.
When the Asian session runs (and why the exact hours vary)
The forex market never truly closes during weekdays, but the Asian session is usually identified with the hours when Asian markets are active. A commonly used reference is roughly 00:00–09:00 UTC (midnight to 9am UTC), which translates to around 7:00pm–4:00am Eastern Time in the United States. That window covers the Sydney open followed by the Tokyo open and overlaps with other Asian hubs.
Those clock times are only a guide. Daylight saving time shifts in Europe, the United States and parts of Australia change local conversions, and some traders treat the Sydney and Tokyo openings separately. The practical point is to know when the major Asian exchanges and regional banks are at work in your own timezone; that determines when the session’s typical patterns are most likely to appear.
What market behaviour to expect during the Asian session
The Asian session tends to be quieter than London and New York. Volume is often lower, price moves are smaller and ranges can be tighter. That quieter character comes from fewer global institutions trading, and because large European and American participants are offline for several hours.
This lower activity produces two common patterns. First, currency pairs frequently trade in narrow ranges or consolidate; you’ll see more sideways candles and fewer long impulsive moves. Second, the session sometimes generates “liquidity sweeps” — short pushes above resistance or below support that trigger stops and then reverse — as market participants hunt liquidity in thin conditions. Those sweeps can be important because they may set up later moves when European markets open.
Although the overall volatility is lower, the Asian session still moves certain currencies more than others. Pairs that include the Japanese yen, Australian dollar or New Zealand dollar typically show higher activity during these hours because those economies and their financial centres are the session’s focus.
Currency pairs and instruments that are most active
Different sessions favour different pairs. During the Asian session, the pairs that usually see the most liquidity and clearest price action include several JPY, AUD and NZD crosses. A short list that traders often watch during Asian hours is:
- USD/JPY
- AUD/USD
- NZD/USD
- AUD/JPY
- EUR/JPY
- GBP/JPY
These pairs tend to have tighter spreads during Asian hours (especially yen pairs) and often show the clean consolidation and range behaviour described above.
Typical trading approaches used in the session (examples)
Traders adapt their approach to fit the session’s character. One common approach is range trading: if a pair is oscillating between clearly defined support and resistance, traders may enter near those boundaries with small targets and tight risk controls. For example, if USD/JPY trades sideways between 130.00 and 130.40 during Tokyo hours, a trader might look for a short near 130.40 with a stop just above the swing high and a modest take-profit near the mid-range.
Another approach is to treat the Asian session as a setup phase for the London open. A trader might mark the session high and low and use a breakout of that range when European markets begin as a trigger for a directional trade. That strategy relies on the idea that London’s higher liquidity can drive a clear breakout after the Asian consolidation.
Some traders also scalp during the “Asian kill zone” — an informal term for the early part of the session when liquidity is building. Scalping here means taking very small, quick profits within the tight ranges, but it requires fast execution and low spreads.
Practical tips for trading the Asian session
If you decide to trade during Asian hours, there are several practical considerations that can help manage risk and improve decision-making. First, check the economic calendar for Asia-focused releases: Japan, Australia and New Zealand publish data that can move their currencies unexpectedly. Second, pay attention to spreads and execution — low liquidity can widen spreads and increase slippage, so you may prefer brokers and instruments that keep costs low at night. Third, use position sizing appropriate to reduced volatility and target smaller profit objectives; the session’s smaller ranges often mean smaller realistic pip targets. Finally, consider waiting 15–30 minutes after the Sydney or Tokyo open before entering aggressive trades, since the market occasionally gaps or resettles right after the opening.
Risks and caveats
Trading the Asian session is not risk-free simply because volatility is lower. Thin liquidity can amplify the impact of a single large order, producing sudden moves, slippage or order rejections. False breakouts are common when the market is range-bound, so breakout entries without confirmation can quickly turn into losing trades. News events in Asia — for example, a surprise Bank of Japan announcement or an unexpected Australian jobs print — can produce sharp and sustained moves at times when many traders assume the market is calm. Always use risk management: limit the size of positions, place stop-loss orders where appropriate, and avoid trading with money you cannot afford to lose. This article does not constitute personalized financial advice.
How session overlaps change the picture
Session overlaps tend to bring higher volume and larger moves. The Asian session overlaps briefly with the early part of the London session, and that overlap can be a moment when ranges break and volatility increases. For pairs where Europe’s currencies are involved (for example EUR/JPY), the Tokyo-London overlap is a time to watch for directional momentum. Similarly, the London–New York overlap later in the day is when global liquidity peaks and many longer trends begin or accelerate.
Example: a day in the life of a Tokyo-session trade
Imagine you monitor AUD/JPY from your desk in London during the Asian session. The pair has traded in a narrow 40-pip band for several hours. You spot a failed attempt to push above the session high followed by a bearish rejection candle. Given the tight range and the rejection, you place a short trade with a stop a few pips above the high and a modest target at the range midpoint. The trade is sized conservatively because spreads are a little wider than during London hours. The market moves in your favour by 20 pips, you close for a small profit and avoid holding overnight. That example illustrates how the Asian session’s range-bound character and short-term reversals can be traded with defined risk, but it also shows why quick exits and precise risk control are important.
Key Takeaways
- The Asian session (Tokyo session) is the first major forex trading window after the weekend and is typically quieter, with narrower ranges and lower overall volatility compared with London and New York.
- Pairs with JPY, AUD and NZD tend to be most active during Asian hours; traders often focus on range trading, scalping or using the Asian high/low as preparation for later breakouts.
- Low liquidity can create false breakouts, slippage and sudden moves around Asian economic releases, so careful risk management and appropriate position sizing are essential.
- Trading carries risk; this information is educational and not personalised financial advice.
References
- https://medium.com/@fxmbrand/asian-session-scalping-strategy-optimized-guide-for-forex-traders-3618a283c694
- https://corporatefinanceinstitute.com/resources/career-map/sell-side/capital-markets/trading-session/
- https://www.investopedia.com/articles/forex/08/3-market-system.asp
- https://ecnexecution.com/financial-tools/forex-market-trading-hours/
- https://www.babypips.com/learn/forex/forex-trading-sessions
- https://www.oanda.com/us-en/trade-tap-blog/trading-knowledge/when-is-the-best-time-for-forex-trading/
- https://www.forex.com/en-sg/forex-trading/forex-market-hours/