Forex Success in Tokyo Trading

Forex trading, or foreign exchange trading, is the buying and selling of currencies in order to make a profit. The forex market is open 24 hours a day, five days a week, with different trading sessions around the world. One of the most important and active trading sessions is the Tokyo session, which overlaps with the London session and the New York session. In this article, we will discuss strategies for success in trading the Tokyo session.

Understanding the Tokyo Session

The Tokyo session is the first major market to open in the forex trading day. It typically starts at 11 PM GMT and ends at 8 AM GMT. The Tokyo session accounts for around 20% of the total global forex trading volume. The most traded currency pairs during this session are the USD/JPY, EUR/JPY, and GBP/JPY.

One of the key characteristics of the Tokyo session is its volatility. The session often sees sharp price movements, especially during the overlap with the London session. Traders need to be aware of news releases and economic data that can affect the market during this time.

Strategies for Trading the Tokyo Session

1. Follow the Market Open

One strategy for trading the Tokyo session is to pay attention to the market open. The opening price can often set the tone for the rest of the session. Traders can look for breakout opportunities or reversion to the mean trades based on the market open.

2. Use Support and Resistance Levels

Support and resistance levels are key areas where price action can reverse or accelerate. Japanese traders often pay attention to these levels, so they can be important during the Tokyo session. Traders can use these levels to identify potential entry and exit points.

3. Trade the News

News releases can cause significant price movements in the forex market. Traders can take advantage of these movements by trading the news. It is important to be aware of the economic calendar and upcoming news events during the Tokyo session.

4. Use Technical Analysis

Technical analysis involves analyzing historical price data to identify patterns and trends. Traders can use technical indicators and chart patterns to make informed trading decisions during the Tokyo session. Common technical indicators include moving averages, RSI, and MACD.


Q: What are the best currency pairs to trade during the Tokyo session?

A: The most traded currency pairs during the Tokyo session are USD/JPY, EUR/JPY, and GBP/JPY.

Q: How can I stay informed about news releases during the Tokyo session?

A: You can use an economic calendar to stay informed about upcoming news releases and economic data that can impact the forex market.

Q: How can I manage risk while trading the Tokyo session?

A: Risk management is crucial in forex trading. You can use stop-loss orders to limit your losses and proper position sizing to manage your risk.


Here are some resources for further reading on trading the Tokyo session:

  • – Understanding the Tokyo Session
  • – Forex Trading Strategies for Beginners
  • – Technical Analysis in Forex Trading

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