(2) The range of exchange rate fluctuations in the Asian foreign exchange market at different times

First of all, let's take a look at the average volatility of major currency pairs during each trading session.

From the chart above, you will find that the European session has the largest average volatility points.

Let's take a deeper look at each trading session, as well as those that overlap.

Tokyo trading hours

At 7:00 PM EST, the Asian foreign exchange trading session officially starts. You should note that the Tokyo trading session is sometimes referred to as the Asian trading session because Tokyo is a financial marekt in Asia.

It is worth noting that Japan is the third largest foreign exchange trading center in the world. This should come as no surprise, as the Japanese yen is the third most traded currency, accounting for 16.50% of total foreign exchange trading volume. Overall, 21% of foreign exchange trading volume is generated during this trading session.

The following are the average fluctuations in the pips of major currency pairs during Asian trading hours:

Here are the main features you should know about the Tokyo time slot:

★ The scope of activities is not limited to the coast of Japan. A large number of foreign exchange transactions can also be made in other financial marekts such as Hong Kong,AlfordAsian financial powerhouses such as Singapore and Sydney;

★ The main market players during the Tokyo session are commercial companies (exporters) and the central bank. Remember that Japan's economy is heavily dependent on exports, and China is an important trading partner, where a large number of transactions take place every day.

★ Market liquidity is sometimes very scarce. (Yuhui International Network Note: If there are no major risk events, the market trading is quite light) Trading during this period is like fishing - you may have to wait a long time to catch the fish;

You should also find that currency pairs in the Asia-Pacific region, such as AUD/USD and NZD/USD, are more liquid than non-Asia-Pacific currency pairs, such as GBP/USD.

★ When liquidity is relatively weak, most currency pairs may be limited to a range. This provides opportunities for day traders, or suggests a potential breakout later in the market.

The vast majority of market transactions take place earlier in the Tokyo session, as more economic data is released during this session, leading to more market volatility.

★ Market movements during the Tokyo session may set the tone for the movements of other markets during the day. Traders during the trading session will then review what happened in the Tokyo session market so that they can organize and evaluate their trading strategies for other trading sessions;

Normally, after a big swing in the overnight New York session, the Tokyo session usually moves sideways.