The Tokyo session is one of the best trading sessions in the forex market. No doubt it is less volatile and has low liquidity than other forex sessions. It is popular among those traders who can’t trade in the daytime so they get entry in the Tokyo session to trade in the night hours and gain profits.
Here is the most asked question: what are the best pairs to trade during the Tokyo session?
Let me explain precisely!
In the Tokyo session, the most popular pair include the Japanese Yen such as EUR/JPY, NZD/JPY, JPY/USD, AUD/JPY, and NZD/USD. Pairs with low volatility are USD/CHF and EUR/USD can also be traded in the Tokyo session.
All the above-mentioned currency pairs are adopted by forex traders who like to trade with high volatility and liquidity. Traders who don’t have a big capital for trading can select some other currency pairs with low volatility.
Let’s read more to understand it more deeply!
Best Forex Pairs to Trade-In Tokyo Session
The most important feature of the best currency pair is its volatility. That’s why it’s essential to choose a currency pair according to the market conditions of your country. If you trade in the Tokyo session, the best currency pair is made with the Japanese Yen.
The profit ratio of a trade depends on trading plans that you set up for successful trades. You can gain more profit by pairing JPY with other currencies like Singapore dollars, Australian dollars, and New Zealand dollars.
There are some other currencies that you can combine with the Japanese Yen(JPY). The most moving currency pairs are listed below:
- EUR/JPY
- USD/JPY
- NZD/JPY
- AUD/JPY
Let’s try to understand why these currency pairs are the most trading pairs in the Tokyo session!
USD/JPY
The US dollar has proved a complicated concept for many traders in different forex trading sessions. Especially, when it is used against Japanese currency (Yen). As soon as you trade this currency pair you will be able to understand it and it will be less complicated for you.
The main feature of USD/JPY is the interest rate of both currencies. You can check the risk rate with interest when you are buying or selling these currency pairs. This combination is closely related to US resources. USD/JPY prices go down with rising rates of bonds and bills.
AUD/JPY
This trading currency pair is no doubt gaining less popularity against USD/JPY but has a prominent position in the forex market. Both currencies are connected and a trader can trade successfully on this trading platform.
In forex trading, a trader will buy or sell any one of these currency pairs in the hope that the value will be changed against others. These changes create chances to achieve profit.
Remember that AUD/JPY mostly faces low liquidity because of it you can’t buy or sell currencies when you want. To avoid this situation, always trade this currency pair when markets are at top hours like between midnight to 6 am GMT.
EUR/JPY
It is the most traded currency pair in international trading markets, especially in the forex market. By using this pair, traders can get more opportunities with a handsome profit. Traders find it suitable because of its high volatility.
It is very attractive for traders because they can gain big rewards in a short period. This pair is just like others. It moves in the same pattern as you trade other best currency pairs. There is only a need for observing the high volatility and liquidity of these pairs.
It is also important to keep an eye on market conditions while trading EUR/JPY in the Tokyo session. Technical analysis helps a trader to get access to this currency pair.
NZD/USD
It is also a profitable currency pair that describes the value of the New Zealand Dollar against the USD. it helps you to understand the amount of US dollars to get NZD to start trading. NZD lies in the list of top ten currency pairs in the trading market.
As soon as you select this pair of currency, you have to be attentive and keep focusing on the market conditions. It will help you to trade successfully at any time of trading hours during Tokyo trading hours.
NZD/JPY
New Zealand Dollar and Japanese Yen are getting more popular day by day in the forex market. These currencies remain active most of the trading time. Specifically, it shows how many Yen you need to buy NZD in the forex market.
It is one of the trading pairs that can provide you the opportunity to change the level of currencies. The Japanese Yen offers you to carry cheap and low capital trades with enough profits.
On the other hand, the New Zealand Dollar is no doubt the most flourishing and secure currency in the forex market.
Table of Best Currency Pairs with Ranges
There are several currency pairs that you can select for trades according to your trading region. You can choose any of them by observing pip rates and high volatility. To make the selection easy for you, here is a table of the best currency pairs with pip ranges that are mostly used in the Tokyo session.
Table of the best currency pairs and pip ranges:
| Currency Pairs | Pip Ranges |
| NZD/USD | 58 |
| EUR/JPY | 57 |
| USD/JPY | 30 |
| GBP/JPY | 72 |
| GBP/USD | 54 |
| EUR/USD | 56 |
| AUD/USD | 65 |
| USD/CHF | 40 |
| AUD/JPY | 65 |
| EUR/GBP | 23 |
The most important point that must be noticed is that all the above-mentioned pip ranges are not fixed. They will be changed according to market conditions. So don’t think of these values as permanent. Don’t forget to check the latest ranges.
5 Main Points About Tokyo Session in Forex
For new traders who are going to trade in the Tokyo session, it’s important to know key factors related to this session. Typically, the Tokyo session can be defined as a trading platform where traders bond to assist because of the low level of volatility and liquidity.
Here are 5 main points that a trader must know while trading in the Tokyo session:
- Low level of liquidity
- Low level of volatility
- It will clear the entry and exit points
- It will breakout trading facilities when it closes
- It is suitable for risk management
After getting these points, a trader can easily get entry into this trading market and trade successfully to gain reasonable profit.
Frequently Asked Questions
What are the best pairs to trade during the Tokyo session?
The performance of currency pairs used during the Tokyo session depends on trading plans and individual traders. To gain volatility, traders like to trade with currency pairs that cross with Singapore dollar, Japanese Yen, Australian, and New Zealand dollar.
What is the best time to trade GBP/JPY in the Tokyo session?
It is best to trade GBP/JPY when both Tokyo and London markets are open. For this, the suitable time lies between 8 am and 9 am GMT. At that time, you will see the most liquid and beneficial price movements.
What are the most moving pairs in the Tokyo session?
The most moving currency pairs include JPY. Such as AUD/JPY, USD/JPY, GBP/JPY, and NZD/JPY. Other trading pairs of Tokyo sessions are AUD/USD, AUD/CHF, EUR/CHF, and NZD/USD.
Conclusion
Here we conclude our informative post about the best currency pairs to trade during the Tokyo session.
Hopefully, after reading this post, you will be able to trade successfully. This trading platform provides you with a complete guide to trading like an expert and you will gain more profit than you think.
If you select most trading pairs like EUR/CHF, NZD/USD, AUD/USD, and GBP/JPY you can easily move ahead in the forex trading market while trading in the Tokyo session.
These pairs provide you the opportunity to achieve more and more profit in hours when New York and London sessions are open.
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