I know this has probably been asked but just looking for some more input on usd/jpy or any other pair that might be good for after 5pm EST trading. I work 9-5 but have swing traded equities for a while but would like to trade forex on the side a little when I get home from work (not at work). Would only trade for 2-3 hours max and would most likely not hold any positions over night. Anyone have any good suggestions? Would the usd/jpy pair have enough volitility and movement from 7pm-10pm? Any other pairs I should look at with a decent amount of movement? Australian pairs? Thanks for the help, just looking for some advice from people who do trade during those hours and have had good market movement and volitility.
USD/JPY, EUR/JPY, and AUD/USD are all active during the Asian session. EUR/JPY and AUD/USD are more volatile but their spreads are also predictably larger.
I'd recommend trading before going work (5-8) while Europe is still in session. The Asian trading hours are horrible with less liquidity and limited movement. When the markets do move in Asian trading hours, it'll move alot but you can go for hours will ten pip ranges.
so in the AM EUR/USD would be a good one obviously? or would that one not work as well since the US market isn't open yet....
Being in the same boat, day job and all, I've been watching the pairs at night from 8ish to 12ish.... as a previous poster stated there are many times where the price action goes sideways with few decernable patterns. Right now I am up in the air about night trading FX.... news is not widely available esp. from Japan.... less you speak the language. So listening to the pulse of the Asian markets gets rather fuzzy. Sure you can watch the Nikkei and observe the USD/JPY stepping in line but something seems to be missing... IDK what. So far night trading is a dull experience with few moments of terror. But worth while... the general experience of watching markets converge and diverge is good to have. Understanding the follow the leader mentality our global economy possesses is wise to maintain. Perhaps your goal is drop the wage slave job and go FT trading... you will need to accumulate screen time... it's the not best screen time but it will help. Night trading may be work depending on your skill set and expectations...All and all, do it... you may form a valid system for trading the night hours...
Attached is a chart for the euro currency futures and it includes volume on hourly bars. The difference in volume between in Tokyo hours and London hours is very significant. The banks use futures to lay pff some risk so this is an excellent barometer for 24 hr cash fx as well. The black boxes show 6e volume from 1am to 7am. The periods prior to that, the Tokyo hours are show next to no volume at all.