Why Some Currency Pairs Move More During the Asian Session Than London

Understanding how the market behaves during different forex market sessions is one of the most overlooked edges in trading. Many traders concentrate on the highly liquid London session Forex hours, assuming that it offers the best opportunities. While London still dominates global volume, some currency pairs actually move more aggressively during the Asian session, especially those connected to Asian and Pacific economies. Knowing why this happens can help traders refine timing, volatility expectations, and select the best forex strategies for each period.

The Importance of Forex Market Hours

Although the forex market runs 24 hours a day, price action varies depending on regional participation. The market is divided into three primary segments Asia, London, and New York with unique liquidity flows and behavioural patterns. Understanding these forex market hours allows traders to identify when volatility, spreads, and momentum are most favourable for their style. For example, a trader who focuses on JPY or AUD pairs often benefits more from Asian session activity, while major EUR and GBP movements tend to accelerate when London opens.

Why Asian Session Moves Certain Currencies More

Not all trading sessions behave the same, and not all currencies move equally across them. The Asian session, driven primarily by Tokyo, Sydney, and emerging Asian markets, sees heightened movement in pairs like AUD/JPY, USD/JPY, NZD/USD and AUD/USD. These top currency pairs react more aggressively because local economic news, commodity price adjustments, and regional sentiment directly impact Asia-linked currencies. This creates noticeable currency pairs movement, allowing traders to capture session-based trends that may not continue into London.

Local Economic Influence Drives Price Activity

The main reason certain pairs move more during Asia is simple: local markets are active. Japanese, Australian, and New Zealand traders are most active when their markets are open, and these participants react directly to interest rate statements, GDP releases, employment data, and trade figures. For example, Bank of Japan comments or Australian inflation data can sharply move USD/JPY or AUD/USD before European traders even log in. This naturally increases the currency pair volatility in Asia, especially for JPY, AUD, and NZD-based markets

Low Liquidity Works As a Volatility Amplifier

The Asian session typically operates with lower liquidity than London. This is not necessarily negative reduced liquidity means prices react faster because fewer orders are available to absorb movement. A moderate flow of institutional buying or selling can create sharp, tradable spikes. This is why traders who specialise in breakout or news trading often view Asia as an ideal window to capture volatility in JPY crosses. Understanding this concept helps traders plan top trading strategies 2025 aligned with thin but reactive markets.

Commodity-Driven Currencies Move Faster Overnight

Another key factor affecting the Asian session is commodity-linked currency flow. The Australian Dollar (AUD) and New Zealand Dollar (NZD) are heavily influenced by commodity values such as iron ore, gold, and agricultural exports. Because commodity exchanges react continually to global news, Asia sees sudden repricing in AUD/USD or NZD/USD at night or at Sydney open. This makes these pairs some of the best currency pairs for traders looking to exploit price sensitivity in the Asian session.

The Yen’s Safe-Haven Role Intensifies Tokyo Volatility

JPY is widely considered a global safe-haven currency. When risk sentiment shifts, whether due to regional tensions or stock market declines, USD/JPY and other yen crosses can move significantly even before London opens. Tokyo banks and institutional desks execute large flows early in the session, causing momentum swings that often-set direction for the day. This makes the yen pairs some of the most preferred Asian session pairs 2025 for active traders

London Still Dominates Broader Market Volatility

Although Asia moves regional currencies more, the London session forex window remains the centre of global market flow. London accounts for the world’s highest spot FX transaction volume, especially among EUR, GBP, and USD pairs. When London opens, liquidity surges, spreads tighten, and continuation or reversal of Asian trends often take place. Pairs like EUR/USD, GBP/USD, and EUR/GBP typically become the preferred London session pairs 2025, driven by economic announcements, institutional trading desks, and European corporate demand for currency conversion.

Comparing Session Volatility for Strategic Trading

Each session has its character:

• Asian session — selective volatility in AUD, NZD, JPY; clean technical setups; thin but reactive moves.

• London session — broader volatility in EUR and GBP majors; trending continuation; heavy institutional flows.

• New York session — USD dominance; reversal opportunities; impactful macro data.

Understanding these patterns helps traders choose when to act and identify opportunities based on their portfolio, risk appetite, and strategy style. This knowledge is crucial when developing profitable best forex strategies supported by time-based predictability.

Choosing the Best Forex Brokers for Session-Driven Trading

Not all brokers perform equally across sessions. Traders often evaluate platforms based on execution, spread stability, liquidity feeds, and depth during off-peak hours. Traders seeking to trade Asia-driven movements usually select top forex brokers offering fast execution and reliable pricing in JPY or AUD pairs. The ability to capture low spread moves during session openings gives traders a structural advantage one reason why choosing among the best forex brokers matters just as much as strategy selection.

Timing Is a Trading Strategy

In the forex market, what you trade is important but when you trade often matters more. Certain currencies are simply more active when their home economies are awake. Understanding this helps traders build intelligent, session-based approaches aligned with forex volatility, rather than fighting market inactivity.

Whether you specialise in London’s momentum or Asia’s selective sharp movements, understanding currency pairs movement across sessions is key to long-term success. Traders who master this concept and pair it with strong execution through reputable top forex brokers gain a timing advantage that compounds return over time.