Asian Trading Session

١٦ سبتمبر ٢٠٢٢

Hello everyone!

Each trading session has its own characteristics.
According to these features, you as a trader should act.
And today I want to discuss with you the specifics of the Asian trading session.

Working hours
The Asian trading session is open from 19:00 to 4:00 New York time.
Trading in Asia begins with Tokyo, the main trading center is opened, the Tokyo Stock Exchange, followed by all the major financial institutions of Japan.
The centers of activity of the Asian session are Tokyo, the largest financial center in Asia. Then, in an hour, Hong Kong and Singapore open, which contributes to the increase in trading.
The trading peak is reached at the opening of the European session, which overlaps with the Asian one at 2:00 New York time.
The Asian and Pacific sessions coincide in terms of working hours and therefore they are often considered as one.

The trading period at this session coincides with the opening hours of the largest Asian exchanges, such as the Hong Kong Stock Exchange, the Israeli TASE, the National Stock Exchange and BSE in India, the Shanghai and Shenzhen Stock Exchanges in China, the Abu Dhabi Stock Exchange and DFM in the UAE, the Saudi Stock Exchange, Singapore SGX, Korean KRX, as well as the Japanese TSE, which in many ways is the market conductor in the Asian session. Also, during this period of time, trading is underway on the Australian ASX, the New Zealand Stock Exchange in Wellington, as well as the Port Moresby Stock Exchange.

Currency pairs
It should be understood that during the Asian session, the Asian currency is characterized by increased volatility.
Currency pairs with the Japanese yen:

AUD/JPY, CAD/JPY, CHF/JPY, EUR/JPY, GBP/JPY, HKD/JPY, NZD/JPY, SGD/JPY, TRY/JPY, USD/JPY.

Currency pairs with the Australian dollar:

AUD/CAD, AUD/CHF, AUD/USD, EUR/AUD, GBP/AUD.

Pairs with Hong Kong Dollar:

EUR/HKD, GBP/HKD, SGD/HKD, USD/HKD.

There is also an increase in volatility in the currency pairs CHN/USD, CHN/RUB, EUR/SGD, GBP/SGD, USD/SGD. It is these pairs that traders pay the main attention to during the Asian session.

Session Features
The Asian session is considered to be the calmest session, where sharp fluctuations are practically excluded, so it will be easier for beginners to trade at this time.
Due to the fact that the market is closed on the weekend, on Monday, driven by the news of what happened over the weekend, the price can create strong movements and even form gaps.
Asian traders form a trend that is most often supported by European and American traders.
The main players during the Asian session are the Japanese Central Bank, as well as large companies. The economies of Japan and China are export-oriented, which causes their companies to be more active in foreign exchange transactions.

Due to the active activity of the state in the market, which are caused by the currency interventions of the Japanese Central Bank, significant deviations of the Yen can be observed, and since 16% of all transactions in the market take place with the participation of the Yen, this also affects other currencies.

Conclusion
It should be understood that most of the time the market is influenced by the state, which by its actions (interventions) pushes the market and creates a trend. That is why news monitoring, tracking the economic indicators of the Asian region, greatly help to predict the future movement of the market.

The Asian session is the quietest trading period, the most suitable for training beginners. Strong jumps are quite rare, while trends are often replaced by strong sideways movements. Volatility during the Asian session is considered to be the lowest, which makes it the least convenient for scalping strategies and the greatest for technical analysis.

Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻