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Chapter 4, Part II. Japan Trading Session. Page 2

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 14, 2013.

  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    What else should we know about the Japan trading session?

    1. The session approximately starts at 23:00 on Greenwich and gradually fades to 8:00 in the morning of the next day. This is equal to 19:00-04:00 EDT in summer and 18:00-03:00 EST in winter.

    2. As we’ve said, the Tokyo trading session is not limited by Japan itself. TA solid part of overall transactions comes from Singapore, Malaysia, Hong Kong, Australia and China.

    3. As you know Japan’s economy is hugely based on Export rather than on Import, Hong Kong, in turn is primarily a financial centre - that’s why the major participants of these trading hours are commercial and Central banks, and different exporters. Due to these reasons it’s become clear why a lot of transactions take place during this time, especially if we will take into consideration the rapidly growing economy of China.

    4. As a rule, liquidity in this session thinner than during the London or New York sessions. This, in turn, very often leads to consolidation in the market – when the market stays in some fairly narrow trading range. But this has positive sides also. First – currencies trading in a range makes it possible to trade breakouts when the Tokyo session will gradually shift to te London trading session and activity starts to increase. Second – range-bound prices make it possible to trade intraday with reasonable risk.

    5. Strong moves in Asia Pacific pairs are more probable than in non-Asian Pacific ones. Now I am talk about AUD, JPY and NZD.

    6. Usually the most active part of the trading session is in the morning, when major parts of different financial and macro data released. But this is typical for any trading session.

    7. Some of you, who may be deals with stocks, knows, that stock traders in the US always look at the EU trading sessions, for example on European DAX Stock Index. The same is true in FOREX. The Tokyo session is the earliest one, so European traders as well as Americans watch its results to create or adjust possible strategies till the end of the trading day.

    8. For the Asia region in turn, the New York trading session precedes Tokyo’s session. And if there was a strong move during New York time, the market very often turns to consolidation, (i.e. stays in some range) during Asia time.

    Pipruit: Oh, finally I’ve heard such words as “trading range”, “consolidation” and something else like that. I’m just starting to feel the spirit of trading.​

    Commander in Pips: I’m glad that you’ve got some partial relief. But now it’s to time to strain again and come back to education.

    Pipruit: Aarrgh...​



    P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon.


    Note: FPA ranks are earned in the battles against scam, not in the classroom.
     
    #1 Sive Morten, Dec 14, 2013
    Lasted edited by : Feb 7, 2016

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