3 charts EUR/USD, USD/JPY, GBP/USD
Not all the time Tokyo springs into action but on the pairs I watch regularly it's 2/3
Tokyo usually springs to life from local time 6.30 am. it is ideally located because come mid-day in New York forex traders just want to go to sleep since they start early to catch the Euro session. Liquidity thins and markets stall. it's the perfect window for a new direction.
The problem with waiting for key data releases is that you maybe right in determining a direction but in the first 15 minutes the volatility is so large that you get stopped out and then frustratingly you will see the prices move in the direction you anticipated after you have been stopped out!
I have found that it is better to trade the aftermath of a key report as volatility dies down. The first rule in trading is to cut your potential for losses and trading into large volatility can produce a whipsaw effect that can take your trade out even if you eventually were proven right.
Happy Trading!
