Chracteristics of the Tokyo trading session
The Japanese and Chinese economies are both dependant on exports, so the Tokyo trading session is driven by currency exchanges by large companies.
The Tokyo session tends to have low liquidity, with most of the action occurring in the Asian-Pacific currencies like the Yen and AUD.
With the low liquidity, most pairs stay within a range during the Tokyo session, making it ideal for day traders and those looking for breakout trades near the end of the session.
The big moves come earlier in the session because that is when economic data is most likely to be released.
Because it is one of the first major markets to open, the Tokyo session often sets the tone for the other markets that open later.
When there are big moves in the New York session, the following Tokyo session is often a period of consolidation.
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https://www.babypips.com/learn/forex/tokyo-session
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