Forex Trading Sessions and Pair Selection

Just like a deer adapts its behavior to the time of day - grazing in the cooler morning, resting during the midday heat, becoming active again as dusk falls - a Forex trader must adjust to the rhythm of the global Forex market sessions. Each session has its characteristics; certain currency pairs can be particularly active during those times. Let's explore this further:

1. Understanding Forex Market Sessions

The Forex market operates 24 hours a day, five days a week, through three major trading sessions:

• The Asian session (Tokyo) begins when the jungle is quiet, and most animals are asleep. This session can be characterized by lower volatility but can also see significant movement if relevant economic news exists.

• The European session (London) is when the jungle comes alive, with lots of activity. Due to many transactions, it's the busiest session, and currency pairs can experience significant volatility.

• The North American session (New York) sees activity overlap with the European traders, creating periods of high volatility before quieting down later in the day.

2. Choosing Currency Pairs Based on Sessions

• During the Asian session, the JPY (Japanese Yen) pairs like USD/JPY, EUR/JPY, and AUD/JPY can be more active due to economic news releases from Japan or Australia.

• In the European session, the EUR (Euro) and GBP (British Pound) pairs like EUR/USD, GBP/USD, and EUR/GBP can see a lot of movement due to the high trading volume from European traders.

• Due to U.S. economic news releases, the North American session often sees increased activity in USD (U.S. Dollar) pairs like EUR/USD, USD/JPY, and AUD/USD.