What Is the Tokyo Session in Forex?

The Tokyo session is the main Asian trading session in forex. It is the third largest by volume, after London and New York, and it represents the period during which Japanese banks and trading firms, along with much of the broader Asia-Pacific market, are most active. Tokyo session activity tends to be most concentrated in JPY pairs and Asian crosses.

This article explains what the Tokyo session is, when it occurs in different time zones, why it matters for forex traders, which currency pairs are most affected, and how it overlaps with the Sydney and London sessions on either side.

What Is the Tokyo Session?

The Tokyo session refers to the period during which the Tokyo financial centre is most active. By convention, the Tokyo session opens at 09:00 Tokyo local time and runs through to 18:00 Tokyo local time, covering the main business hours of Japanese banks and trading firms.

Japan does not observe daylight saving time. Japan Standard Time (JST) is fixed at GMT+9 year-round. This means the Tokyo session is constant in GMT terms and shifts only when other regions change their DST.

Tokyo is the third largest forex trading centre globally. While London and New York handle the largest share of global forex volume, Tokyo dominates the Asian trading hours. JPY-related order flow, BOJ-related activity, and Asia-Pacific cross trading concentrate during this window.

Tokyo Session Hours and Time Zones

The Tokyo session opens at 09:00 Tokyo local time (JST), which equals 00:00 GMT. The session runs to 18:00 Tokyo local time, which equals 09:00 GMT.

Conversions for several common locations:

In London (GMT in winter, BST in summer): Tokyo open at 00:00 GMT in winter (London on GMT) and 01:00 BST in summer (London on GMT+1).

In South Africa (SAST, UTC+2, no daylight saving): Tokyo open at 02:00 SAST, fixed year-round.

In Singapore (SGT, UTC+8, no daylight saving): Tokyo open at 08:00 SGT, fixed year-round.

In the UAE and the Gulf (GST, UTC+4, no daylight saving): Tokyo open at 04:00 GST, fixed year-round.

In New York (EST in winter, EDT in summer): Tokyo open at 19:00 EST (previous day) in winter, 20:00 EDT (previous day) in summer.

Because Japan does not observe daylight saving, the Tokyo session hours in JST and GMT are fixed. Conversion times to other locations only shift when those other locations cross their own DST transitions.

Why the Tokyo Session Matters

The Tokyo session is significant for several reasons, even though it sees less total volume than London or New York.

The first is its dominance of Asian forex activity. JPY pairs trade most heavily during Tokyo hours, and AUD and NZD pairs (which are technically within the Asia-Pacific time zone) see most of their concentrated regional flow through this period.

The second is the position in the global trading clock. The Tokyo session sits between the Sydney session that opens earlier and the London session that opens later. Price action and any significant data from Tokyo hours often sets the early tone for the London session that follows.

The third is the role in setting JPY-cross direction. Major JPY moves during Tokyo hours frequently transmit into European-session trading in EUR and GBP crosses.

Currency Pairs Most Affected by the Tokyo Session

JPY pairs see the strongest activity during the Tokyo session. USDJPY, EURJPY, GBPJPY, AUDJPY, NZDJPY, and CADJPY all typically experience their most concentrated Asian-hours flow during these hours.

AUD and NZD pairs also see notable activity. AUDUSD, NZDUSD, AUDJPY, NZDJPY, and crosses such as AUDNZD all trade actively during Tokyo hours because Sydney and Wellington are within similar time zones, and Australasian institutions are active.

Asian crosses such as USDSGD and USDHKD trade most actively during Tokyo hours and immediately before the London open.

EUR, GBP, and other major non-JPY pairs trade during the Tokyo session but typically with lower volume and narrower ranges than during their home sessions.

Spreads are variable and are typically higher than minimum figures shown.

Tokyo Session Compared with London and New York

Tokyo session activity is generally lower in volatility than the London or New York sessions. Price action is often more range-bound, with major breakouts and trend establishment more typical of European and American hours.

The Tokyo session does not overlap with the New York session; they are on opposite sides of the global clock. The Tokyo session ends well before the New York session opens.

The Tokyo / London overlap occurs at the close of Tokyo and the start of London. The London session opens at 08:00 GMT in winter and 07:00 GMT in summer. The Tokyo session closes at 09:00 GMT. The overlap is therefore typically the final hour or two of Tokyo with the first hour or two of London. This is often the most active hour of the Tokyo session, as European desks come online while Tokyo desks are still active.

Economic Data Around the Tokyo Session

Tokyo session hours coincide with releases of important Asia-Pacific economic data. Common release times include:

Bank of Japan (BOJ) rate decisions: typically released between 11:00 and 12:00 Tokyo local time (02:00-03:00 GMT) on scheduled meeting days.

Japan CPI, retail sales, GDP, trade balance: typically released around 08:50 Tokyo local time (23:50 GMT previous day), at the very start of the Tokyo session.

Reserve Bank of Australia (RBA) rate decisions: typically at 14:30 Sydney local time, which falls during late-morning Tokyo session hours.

China economic data: GDP, CPI, retail sales, industrial production typically released around 09:30-10:00 Beijing time (10:30-11:00 JST), during the Tokyo session.

These releases can cause sharp moves in JPY pairs, AUD pairs, and Asian crosses. Traders often watch the economic calendar for the upcoming release schedule. MT5 includes a built-in economic calendar in the Toolbox > Calendar tab.

Considerations When Trading the Tokyo Session

The Tokyo session typically has lower volatility and narrower ranges than the London and New York sessions. This affects both strategy selection and trade management.

Range-bound or mean-reverting approaches often see different behaviour during Tokyo hours than during European or American hours. Breakouts that occur during Tokyo hours are typically smaller in magnitude than those in London or New York.

For traders running trend-following or breakout strategies, the Tokyo session may produce more false signals than the London or New York sessions. Position sizing should account for this difference.

Spreads on JPY pairs are typically tighter during Tokyo hours than during the European and American sessions. Spreads on EUR, GBP, and CHF pairs are typically wider during Tokyo hours than during their respective home sessions. Spreads are variable and are typically higher than minimum figures shown.

Orders are executed at the best available market price, which may result in positive or negative slippage. Demo accounts often execute instantly and may not fully replicate live slippage conditions.

Leverage on each instrument is subject to change depending on market conditions and applicable regulatory requirements.

Practical Considerations

For traders based outside Asia-Pacific, the Tokyo session can fall at inconvenient hours. UK traders see the Tokyo open at 00:00 GMT (midnight in winter, 01:00 BST in summer); US East Coast traders see it in the evening at 19:00 or 20:00 local time. Consider whether your strategy benefits from being active during Tokyo hours or whether pending orders, alerts, or expert advisors would serve better.

The first hour of the Tokyo session often coincides with the release of major Japan economic data (released around 08:50 Tokyo local time). This makes the very start of the session particularly active despite the broader characterisation of Tokyo as a lower-volatility window.

For monitoring the Tokyo session and surrounding market activity, the MT5 economic calendar (Toolbox > Calendar) shows scheduled releases by time and importance. Both MT4 and MT5 chart timeframes from M1 up to MN1 are available for analysing intraday and longer-term patterns around the session.

Trading at TIOmarkets

TIOmarkets offers MetaTrader 4 and MetaTrader 5 on desktop, web, and mobile, across four account types. The Standard account is created automatically on registration with a minimum deposit of $20 or currency equivalent. The Raw and VIP Black accounts are opened separately through the client area. The Nano account is MT5 only with a $20 minimum deposit, USD only. Hedging is supported on all accounts. A swap-free Islamic account is available; contact TIOmarkets for eligibility and instrument requirements. Copy trading is available on both MT4 and MT5.

Orders are executed at the best available market price, which may result in positive or negative slippage. Demo accounts often execute instantly and may not fully replicate live slippage conditions. Spreads are variable and are typically higher than minimum figures shown. Leverage on each instrument is subject to change depending on market conditions and applicable regulatory requirements. You can review the full list of account types on the TIOmarkets accounts page.