The Tokyo Forex trading session operates from 7:00 PM to 4:00 AM Eastern Time (ET) from January 1 to March 8, 2025, and resumes from November 2 until the end of the year. During the daylight saving period—from the second Sunday of March (March 9) to the first Sunday of November (November 1)—the Tokyo Forex session shifts to 8:00 PM to 5:00 AM ET.
Here are the equivalent local times for the Tokyo session in the following major time zones:
| Location | Local Time |
|---|---|
| Tokyo | 9:00 AM to 6:00 PM Japan Standard Time (JST) |
| Berlin/Paris | Standard: 12:00 AM to 9:00 AM Central European Time (CET) Daylight Saving Time: 1:00 AM to 10:00 AM CET |
| India | 5:30 AM to 2:30 PM Indian Standard Time (IST) |
| South Africa | 2:00 AM to 11:00 AM South Africa Standard Time (SAST) |
| United Kingdom | Standard: 12:00 AM to 9:00 AM Greenwich Mean Time (GMT) Daylight Saving Time: 1:00 AM to 10:00 AM GMT |
| Toronto | Standard: 7:00 PM to 4:00 AM Eastern Time (ET) Daylight Saving Time: 8:00 AM to 5:00 PM ET |
| Sydney | Standard: 10:00 AM to 7:00 PM Australian Eastern Time (AET) Daylight Saving Time: 11:00 AM to 8:00 PM AET |
| New York | Standard: 7:00 PM to 4:00 AM Eastern Time (ET) Daylight Saving Time: 8:00 AM to 5:00 PM ET |
| Singapore | 8:00 AM to 5:00 PM Singapore Standard Time (SGT) |
| Hongkong | 8:00 AM to 5:00 PM Hong Kong Time (HKT) |
What are the best currency pairs to trade during the Tokyo Forex session?
As a standard, the best currency pairs to trade are those with relatively higher liquidity and volatility, as they tend to offer more trading opportunities compared to other pairs. That said, here are five of the favorite pairs during the Tokyo session:
- US Dollar/Japanese Yen (USD/JPY) – The USD/JPY pair typically has the highest liquidity during the Tokyo session. This is largely because the United States is Japan’s top trading partner in terms of its total imports and exports.
- Australian Dollar/Japanese Yen (AUD/JPY) – The AUD/JPY pair also enjoys high liquidity due to Australia and Japan’s close economic ties. In addition, both currencies are extensively traded within the Asian market.
- Euro/Japanese Yen (EUR/JPY) – The EUR/JPY pair is among one of the favorites during the Tokyo session. It is particularly popular in the early hours of the session, as market participants position themselves ahead of the opening of the London session.
- New Zealand Dollar/Japanese Yen (NZD/JPY) – As two of the most traded currencies in the Asia-Pacific region, the NZD/JPY is a staple during the Tokyo session. New Zealand is a major agricultural trade partner of Japan, being one of its top exporters of agricultural products.
- British Pound/Japanese Yen (GBP/JPY) – The GBP/JPY is among the most volatile pairs, particularly during the overlap between the Tokyo and London sessions. The Tokyo session operates until 4:00 AM ET, while the London session begins at 3:00 AM ET. Hence, this makes the 3:00 AM to 4:00 AM ET window highly volatile.
How important is the Tokyo Session for the global Forex market?
Since Japan is the third biggest economy in the world, the Tokyo session is vital for the global Forex market as it is often synonymous with the “Asian market.” In fact, when market participants consider the entire Asia-Pacific region, the Tokyo session frequently serves as the “de facto” benchmark.
As the first major session to open each day, the Tokyo session essentially sets the tone for market sentiment in the global forex market. This is because economic announcements from major Asia-Pacific economies—such as Japan, Australia, and New Zealand—are typically released and immediately reflected during this session, ahead of both the London and New York sessions.
Tokyo vs. London vs. New York Sessions: Which offers the most trading opportunities?
When comparing these three major Forex Trading sessions, it is essential to consider various factors to determine which one offers the most trading opportunities, depending on your specific use case and risk appetite. That said, here are five of the most important factors to consider:
| Category | Tokyo Session | London Session | New York Session |
|---|---|---|---|
| Operating Hours (Consider your availability to trade by time of day) | Standard: 7:00 PM to 4:00 AM ET Daylight Savings: 8:00 PM to 5:00 AM | Standard: 3:00 AM to 12:00 PM ET Daylight Savings: 4:00 AM to 1:00 PM | Standard: 8:00 AM to 5:00 PM ET Daylight Savings: 9:00 AM to 6:00 PM |
| Liquidity/Volatility (Consider your need for liquidity and volatility tolerance) | With relatively moderate liquidity and volatility levels | With the highest liquidity and volatility levels | With high liquidity and volatility levels |
| Major Currencies Traded (Consider your preferred currencies) | Japanese Yen, Australian Dollar, New Zeland Dollar, and US Dollar | US Dollar, Euro, British Pound, Japanese Yen, and Swiss Franc | US Dollar, Euro, British Pound, Japanese Yen, and Canadian Dollar |
| Economic Data (Consider the major economies you want to follow and prioritize) | Major economic announcements from Japan, Australia, New Zeland | Major economic announcements from the UK and the Eurozone | Major economic announcements from the US and Canada |
| Risk Level (Consider your risk tolerance) | Relatively moderate; more ideal for beginners | Relatively high; more ideal for experienced and advanced traders | Relatively high; more ideal for experienced and advanced traders |
Frequently Asked Questions on Tokyo Forex Session
What time does the Tokyo Forex session overlap with other sessions?
The Tokyo session overlaps with the London session between 3:00 AM and 4:00 AM ET, creating a period of increased volatility, especially for pairs like GBP/JPY. There is no overlap with the New York session, as the latter begins after Tokyo closes.
Is the Tokyo Forex session suitable for beginners?
Yes, the Tokyo Forex session is ideal for beginners due to its relatively moderate liquidity and volatility compared to the London and New York sessions. It allows traders to learn market dynamics without the extreme price swings seen in more volatile sessions.
Which currency pairs are best to trade during the Tokyo session?
The best pairs to trade during the Tokyo session include USD/JPY, AUD/JPY, and NZD/JPY due to their high liquidity and strong connections to the Asia-Pacific region. GBP/JPY is also popular, especially during the overlap with the London session.
