First let’s take a look at the average volatility points of major currency pairs during each trading session.

The range of exchange rate fluctuations in the Asian foreign exchange market at different times-Yuhui International
From the chart above, you will find that the average volatility point is the largest in European time.
Let us have a deeper understanding of each trading session and those overlapping sessions.
Tokyo trading hours
At 7:00 p.m. EDT, the Asian foreign exchange trading session was officially launched. You should note that Tokyo trading hours are sometimes referred to as Asian trading hours because Tokyo is a financial market in Asia.
It is worth mentioning that Japan is the third largest foreign exchange trading center in the world. This should not be too surprising, because the yen is the third largest trading currency, accounting for 16.50% of the total foreign exchange transactions. Overall, 21% of foreign exchange trading volume occurred during this trading session.
The following is the average fluctuation of major currency pairs in Asian trading hours:

The range of exchange rate fluctuations in the Asian foreign exchange market at different times-Yuhui International
Here are the main features you should know about Tokyo time:

★ The scope of activities is not limited to the coast of Japan. A large number of foreign exchange transactions can also be in other financial markets, such as Hong Kong, Singapore and Sydney, and other Asian financial centers;
★ The main market participants during the Tokyo session are commercial companies (exporters) and central banks. Please keep in mind that Japan ’s economy is heavily dependent on exports, and China is its important trading partner, where a large number of transactions are carried out every day;
★ The liquidity of the market is sometimes very scarce. (Yuhui International Net Note: If there is no major risk event, the market trading is quite light) During this period, trading is like fishing-if you want to catch fish, you may have to wait for a long time;
★ You should find that currency pairs in the Asia-Pacific region, such as AUD / USD and NZD / USD, are more liquid than currency pairs in non-Asia-Pacific regions, such as GBP / USD;

★ When the liquidity is relatively weak, most currency pairs may be limited to a range. This provides an opportunity for short-term traders within the day, or means that there will be a potential breakthrough market outlook;

★ The vast majority of market transactions occurred earlier in the Tokyo time period, because more economic data is released during this time period, and the market will appear more volatile;

★ The market trend in Tokyo may set the tone for other markets during the day. Traders during the trading session will review what happened in the Tokyo session, so that they can organize and evaluate the trading strategies they should adopt during other trading sessions;