Best Forex Pairs to Trade During the Asian Session

 

Asian session trading brings along a different set of opportunities for forex traders. Although it is not as hectic as the London or New York sessions, the Asian session (mainly consisting of Tokyo, Singapore, and Sydney) is characterized by its own rhythm, liquidity, and volatility, which can be used very productively. In the following post, we will list the best-performing currency pairs for this session, supported by data and strategic advice from hands-on experience.

Understanding the Asian Session

The Asian trading session usually starts at 11:00 PM and ends at 8:00 AM GMT approximately (the time in Tokyo is about 7:00 AM to 4:00 PM).

The session consists of the significant markets Tokyo (Japan), Sydney (Australia), and Singapore, and it is the first main forex window in the 24-hour cycle.

Liquidity in Asia is often lower and volatility less pronounced compared to the European and American sessions — but not everywhere. Major economic reports and central bank policy changes in Japan, Australia, and New Zealand can still lead to large price movements.

One source claims that the Asian (Tokyo) session is responsible for about 20% of the total daily forex volume. Defcofx This means that it might not be the busiest session, but it is definitely not inactive at all.

Why Certain Currency Pairs Work Best in the Asian Session

Major currency pairs that are capitalizing on the Asian session usually possess some of the same essential features. They are regionally significant and consist of currencies of the Asia-Pacific economies plus the Japanese Yen (JPY), Australian Dollar (AUD), and New Zealand Dollar (NZD) (Forex Academy, coinroop.com). A lot of them, like AUD and NZD, have commodity exposure, which makes them more sensitive to overall market sentiment and commodity price movement.s

Certain cross-pairs like AUD/JPY and NZD/JPY embody the risk-on/risk-off dynamics (forex.in.rs), but these currencies are also news-responsive since they are very much affected by the regional economic developments like the Bank of Japan policy, Chinese demand, and RBA or RBNZ decisions

Top Forex Pairs to Trade in the Asian Session

Based on liquidity, volatility, and relevance during this window, here are the best forex pairs to focus on:

1. USD/JPY
2. AUD/USD
3. NZD/USD
4. AUD/JPY
5. NZD/JPY
6. EUR/JPY / GBP/JPY

Below, we break down each pair, why it’s attractive, and what to watch out for.

1. USD/JPY

Why it’s popular:

• High Liquidity: The Japanese yen has a very high trading volume, and the USD/JPY exchange rate is still one of the most liquid pairs during the Asian session.
• Tight Spreads: Due to the enormous amount of transactions taking place in Tokyo, the spreads for the USD/JPY pair are usually narrow, which is perfect for scalping or short-term trading strategies.
• News Sensitivity: The exchange rate reacts very strongly to monetary policies by the Bank of Japan (BOJ), Japanese economic reports, and overall market risk sentiment,nd vice versa.
• Structural Volume: Defcofx reports that in April 2025, the average daily turnover in Japan’s domestic forex market was USD 462.1 billion, nd the USD/JPY spot deals accounted for about 63.11% of the total spot turnover in Japan.

How to trade it:

• Adopt breakout strategies during the Tokyo opening hours.
• Pay attention to BOJ or U.S. news releases for entry/exit.
• Employ technical indicators such as moving averages and RSI to eliminate false breakouts.

2. AUD/USD

Why it’s attractive:

• Commodity Influence: The Australian dollar has a strong correlation with the prices of commodities (mainly gold and iron ore), as well as China’s consumption. Traders MBA+1
• Overlapping Sessions: The Sydney session coincides with the Tokyo session, which leads to increased liquidity. HowToTrade
• News Sensitivity: Major moves can be caused by Australian economic indicators (e.g., employment, RBA decisions) and Chinese economic news. Defcofx
• Risk-On Dynamics: Since AUD is a good indicator of risk sentiment, its movement is usually in line with the global risk appetite shifts. acy.com

How to trade it:

• Range trading typically turns out to be a good strategy as the Asian session tends to be less volatile.
• Apply breakout tactics whenever news comes from Australia or China
• Monitor commodity news (gold in particular) as it could have a direct impact on the strength of the Australian dollar.

3. NZD/USD

Why it’s a good pick:

• New Zealand’s Economic Drivers: NZD is influenced by New Zealand’s economic indicators (e.g., trade, dairy exports) and monetary policy decisions by the RBNZ.
• Commodity Exposure: Like AUD, NZD is also linked to commodities (especially dairy), which makes it reactive.
• Overlap Effect: In the beginning part of the Tokyo session, NZD/USD could get liquidity due to the overlap of Sydney and Tokyo. HowToTrade
• Cleaner Moves: Asia hours are preferred by some traders for NZD/USD since its price changes are usually smoother and more technical without sudden spikes. Defcofx

How to trade it:

• Trend-following or mean reversion methods can be applied according to the situation in the market.
• Take notice of the RBNZ remarks and the economic data of New Zealand.
• Apart from such discrete moves, support/resistance areas and technical indicators can be used, as the moves may be smooth.

4. AUD/JPY

Why it stands out:

• Cross-Pair Volatility: The combination of AUD, which is linked to commodities, and yen makes this pair capable of showing high volatility as well as trendiness. defcofx
• Risk Sentiment Indicator: Changes in AUD/JPY are frequently regarded as an indicator of risk-on or risk-off sentiment, thus making this pair beneficial for traders who are trying to interpret market sentiment. defcofx
• Session Activity: The trade between Japan and Australia is happening during the Asian session, which is the reason for the pair to have more activity. coinroop.com
• Trends & Breakouts: The pair usually behaves in a trending manner during the Asian hours, especially after the release of significant economic data.

How to trade it:

• Employ breakout techniques after the Asian session has opened or after major economic announcements.
• Integrate price action with the use of momentum indicators to seize the upcoming direction of the market.
• Take care to recognize false breakouts, in particular, if a lack of liquidity is present in the markets.

5. NZD/JPY

Why it’s worthwhile:

• Balanced Cross: The pairing of NZD/JPY, which includes the safe-haven yen and the commodity-driven Kiwi, presents a dual opportunity for both risk-driven and technical setups.
• Trend Potential: As per the report from Forex.in.rs, the NZD/JPY pair is one of the most volatile pairs during the Asian session, with an average of about 67 pips of price movement, according to the volatility study conducted by Forex.in.rs. forex.in.rs
• Liquidity: It is active during the overlap of both the New Zealand and the Japanese market hours. coinroop.com
• Risk & Sentiment Sensitivity: The moves represent global risk (via NZD) and safe-haven flows (via JPY). forex.in.rs

How to trade it:

• Inevitably, after the release of economic data from New Zealand or Japan, the trend setups will become more noticeable.
• Traders should rely on the use of technical patterns (for example, trendlines, channels) in such market behaviour since it is very likely that the price will move in a structured manner.
• Do not forget to account for risk when opening positions. The market can become very volatile, and thus, this is very important.

6. EUR/JPY and GBP/JPY

Why include them:

• Cross-Pair Dynamics: With the Euro or British Pound coupled with the Japanese Yen, these pairs receive input from both the European and the Asian trading sessions. coinroop.com+1
• Volatility: Cross-JPY pairs are not as frequently but they still see strong moves, especially when there is economic data release related to Japan or when there is a change in risk sentiment. Traders MBA
• Range or Breakout Trading: The pairs sometimes move sideways during the first hours of trading due to the lack of European influence in Asia, making them ideal for traders who apply the range strategy. HowToTrade
• Higher Risk Potential: Especially GBP/JPY, as it is known for its larger pip swings, which attract only experienced traders. coinroop.com

How to trade them:

• When there is a low liquidity situation, make use of the range techniques (support/resistance).
• Always observe for breakouts following the later hours of Tokyo or during the opening of Europe.
• To spot the larger trend movement, apply higher timeframes.

Risk Management & Strategy Tips for the Asian Session

Trading during the Asian session is different than the more explosive London or New York sessions. Here are some strategies and risk-management tips:

1. Lower Volatility → Smaller Targets

The traders for whom the volatility and liquidity are less may have to adjust the profit targets downwards. Range trading or breakout trading should thus be done in proper sizes.

1. Be Wary of News Surprise: Free market movements in Asia may not be there, but announcements about the economy in Japan, Australia, and New Zealand can still cause significant price changes. Therefore, it is important to use a news calendar to schedule your entry points.
2. Use Technical Tools: The employment of technical tools such as Bollinger Bands, RSI, MACD, and trendlines can aid in identifying breakout points or zones of consolidation. Since the Asian trading session may display consolidation, the use of these tools can be very advantageous.
3. Time Your Entries

• Accumulation or breakout behavior is frequently observed during the first hour following the opening of Tokyo. Defcofx
• Monitor the “Asian range” for breakout trades before the start of the London session. Defcofx+1
• The combination of various strategies is very effective: for instance, breakout + momentum, or range + mean reversion.

1. Risk Management

• Tighter stop-losses are to be applied for scalping since price movements may be minor.
• Lot sizing should be correct when trading powerful crosses such as GBP/JPY or AUD/JPY.
• Take hedging or partial exits into consideration if large news is expected (for example, BOJ or RBA announcements).

Why These Pairs Are Statistically Relevant

As per the Forex Academy, the USD/JPY pair is the most traded in the Asian market. Forex.in.rs provides data that the average pip range for a few JPY and AUD pairs is quite large, such as NZD/JPY (~67 pips), AUD/JPY (~64 pips), and AUD/USD (~63 pips). Moreover, ACY points out that the active movers during this session are USD/JPY, AUD/USD, NZD/USD, and also the cross-yen pairs like AUD/JPY and NZD/JPY. The statistics indicate that the suggested pairs are backed by significant trading volume and volatility patterns, thus they are dependable selections for Asian session strategies.

Conclusion

The Asian trading session might be less hectic than the London or New York sessions, but it still presents strategic opportunities. Major currency pairs are USD/JPY, AUD/USD, NZD/USD, and cross-yens like AUD/JPY, NZD/JPY, EUR/JPY, GBP/JPY. These react to the events in the respective regions and the news, thus giving the disciplined traders the opportunity to make profits from the moderate volatility with the right risk management and technical strategies.