The Sydney to Tokyo handover

[Fairman]

The Sydney to Tokyo handover

Around 7pm to 8pm New York time, Sydney's session is running and Tokyo is coming online. The handover is not as sharp as the London or New York transition, but it has a texture.

AUD and NZD pairs see peak activity from Sydney traders. As Tokyo opens, USDJPY, EURJPY, and the other yen crosses become more active. Volatility in JPY pairs picks up while AUD pairs calm.

The shift affects how correlations behave. The usual link between AUD and risk assets may weaken briefly, as yen flows dominate.

For a scalper, the handover offers a moment of rebalancing in liquidity. Spreads on yen pairs narrow, while those on AUD may widen slightly.

The Tokyo open also brings the first Japanese data and headlines of the day, and the early Tokyo fix preparations. The whole period has a rhythm that's smaller than the main sessions but real.

Those who trade Asian hours often find that the best opportunities come in the first hour after Tokyo opens, when the pairs reset their ranges.

Around the Tokyo open, how does the USDJPY spread change on the broker here?