The Asian session runs from 11 PM to 8 AM GMT, while the London session starts at 8 AM and ends at 5 PM GMT. The overlap between these sessions, from around 8 AM to 9 AM GMT, is a key time for traders due to increased liquidity and volatility.
Key Takeaways
- Asian session timing: 11 PM to 8 AM GMT.
- London session timing: 8 AM to 5 PM GMT.
- Overlap period: 8 AM to 9 AM GMT.
- Volatility boost: Overlap increases price action and trade opportunities.
- Active pairs: JPY, EUR, and GBP-based currency pairs tend to move most.
Asian Session Explained
The Asian forex session, commonly referred to as the Tokyo session, kicks off the global trading day. It runs approximately from 11 PM GMT to 8 AM GMT, though activity can begin earlier as Sydney markets open slightly before Tokyo. This session serves as the foundation for market sentiment after the weekend, especially on Mondays.
Key financial hubs active during this time include Tokyo, Sydney, and Hong Kong, with Tokyo being the largest contributor to volume. These cities represent significant economic powerhouses in the Asia-Pacific region, influencing currency pairs tied to the Japanese yen (JPY), Australian dollar (AUD), and New Zealand dollar (NZD).
While the Asian session tends to have lower volatility and liquidity compared to the London and New York sessions, it still offers structured and consistent price movements. This environment makes it ideal for range-bound strategies and technical trading, as price often respects support and resistance levels with fewer unexpected breakouts.
Economic news releases from countries like Japan, Australia, and China can still cause sharp movements, especially in JPY and AUD pairs. Traders focusing on the Asian session usually monitor events such as BOJ statements, RBA rate decisions, and trade balance data.
London Session Explained
The London session begins at 8 AM GMT and runs until 5 PM GMT, making it one of the most critical trading periods in the forex market. This session is often referred to as the powerhouse of forex trading due to the sheer volume of transactions and the involvement of major financial institutions headquartered across Europe.
What sets the London session apart is its high liquidity, tight spreads, and volatility, especially during the early hours when it overlaps with the tail end of the Asian session. This session also coincides with the release of major economic news from the Eurozone, the United Kingdom, and Switzerland, making it a hub for market-moving announcements such as interest rate decisions, employment reports, and GDP data.
During this time, institutional players, including central banks, hedge funds, multinational corporations, and proprietary trading desks, are most active. As a result, order flow is heavy, and price action tends to be more volatile, creating ample opportunities for both breakout and momentum traders.
The most commonly traded pairs during the London session include:
- EUR/USD: Driven by both EU and US data
- GBP/USD: Influenced heavily by UK macroeconomic trends
- EUR/GBP: A favorite among traders who focus on European currency relationships
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Open a live trading account today!Asian-London Overlap
The Asian-London overlap occurs from approximately 8 AM to 9 AM GMT, when both sessions are open simultaneously. This one-hour window sees a surge in trading volume, particularly in JPY and EUR pairs. Traders often see breakouts during this time as the European markets react to developments from the Asian session. High-volume trading and increased participation from institutional players lead to sharper price movements.
Impact of Daylight Savings & Brokers
While the standard GMT timings are reliable, they can shift depending on Daylight Saving Time (DST) adjustments in Europe and Australia. Also, broker server time can influence how session open and close appear on your chart.
For example, when DST begins in the UK, the London session may start an hour earlier (7 AM GMT instead of 8 AM). Traders should always check their platform’s session indicators or use market clocks.
Final Thoughts on the Asian Session and London Session EMT
The Asian session and London session EMT trading overlap provides a critical window for traders to capture high-volume, high-probability setups.
The Asian session is quieter and range-bound, while the London session brings momentum and volatility. Understanding the timing, behavior, and strategy behind each session helps traders align their trades with market rhythm, increasing the chances of success.
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FAQs
5 AM GMT is generally still considered part of the Asian session. However, depending on your broker’s server time and daylight saving adjustments, early price activity from London traders may already begin to influence the market.
The Asian session involves fewer major financial centers and participants, leading to lower trading volume and slower price movement. Traders often see consolidations or range-bound conditions unless there’s breaking news from Asia-Pacific economies.
Pairs like EUR/USD, GBP/USD, and EUR/GBP experience high liquidity and volatility during the London session due to overlapping economic news releases and large institutional order flow from European markets.
The Asian-London overlap occurs between 8 AM and 9 AM GMT. It matters because both regions are active, increasing market participation and creating more volatility. These are ideal conditions for breakout and trend-based forex strategies.
Daylight saving time (DST) shifts the start and end times of sessions by an hour in regions like the UK and Australia. Traders should adjust accordingly to ensure they’re entering trades during actual session overlaps or openings.
Not always. Some brokers use GMT, while others use local or server time (like GMT+2 or GMT+3). This affects how session breaks appear on your charts, so confirm your broker’s settings for accurate analysis.
The London-New York overlap (1 PM to 4 PM GMT) has the most volume, but the Asian-London overlap (8 AM to 9 AM GMT) offers earlier momentum and breakout opportunities, especially for traders in Europe, Asia, or the Middle East.
Yes. Range trading often works better during the Asian session, while trend or breakout strategies are more effective during the London session and overlaps, when volatility, liquidity, and institutional participation are at their peak.
Is 5 AM part of the London or Asian session?
5 AM GMT is generally still considered part of the Asian session. However, depending on your broker’s server time and daylight saving adjustments, early price activity from London traders may already begin to influence the market.
Why is the Asian session typically less volatile?
The Asian session involves fewer major financial centers and participants, leading to lower trading volume and slower price movement. Traders often see consolidations or range-bound conditions unless there’s breaking news from Asia-Pacific economies.
Which currency pairs are most active in the London session?
Pairs like EUR/USD, GBP/USD, and EUR/GBP experience high liquidity and volatility during the London session due to overlapping economic news releases and large institutional order flow from European markets.
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