Last Updated on March 29, 2025 by Arif Chowdhury
Why the Tokyo Session Matters 🇯🇵
I’ve been trading Forex since 2015, and I’ll tell you straight: most traders ignore the Tokyo session.
Big mistake.
The Asian session offers unique scalping opportunities that can add serious pips to your monthly totals.
According to a 2023 BIS survey, the Tokyo session accounts for 28% of daily forex volume, yet receives only 12% of retail trader attention. Their loss, our gain.
Let me show you how to extract quick profits from these overlooked hours.
The 5-Minute Tokyo Momentum Strategy Breakdown ⏱️
This strategy works because it capitalizes on the initial momentum bursts when Tokyo desks open.
Best Pairs: USD/JPY, EUR/JPY, GBP/JPY, AUD/JPY
Timeframe: 5-minute charts
Session Time: 00:00-03:00 GMT (Tokyo open)
Average Win Rate: 67% when strictly following rules (based on my 2023-2024 trading journal data)
Setup Requirements 🛠️
You need three things:
1. Momentum Indicators
- Stochastic Oscillator (5,3,3)
- RSI (14)
- EMA (20)
2. Clean Chart
- Remove unnecessary indicators
- Focus on price action and your momentum tools
3. Broker with Tight Spreads
- Low transaction costs are crucial for scalping
- I’ve tested dozens and compiled the best forex brokers for scalping here
Entry Rules for Quick Scalps 📊
For Long Entries:
- Price crosses above 20 EMA
- Stochastic crosses above 20
- RSI crosses above 40
- First 5-minute candle after Tokyo open shows strong momentum
- Enter at market after confirmation candle closes
For Short Entries:
- Price crosses below 20 EMA
- Stochastic crosses below 80
- RSI crosses below 60
- First 5-minute candle after Tokyo open shows strong downward momentum
- Enter at market after confirmation candle closes
Risk Management (Non-Negotiable) ⚠️
- 1-2% risk per trade maximum
- Set stop loss 15-20 pips away from entry
- Take profit at 2:1 reward-to-risk minimum
- Exit all positions before London opens
- No revenge trading if you miss the momentum window
Why This Works When Other Strategies Fail 🔍
The Tokyo session has unique characteristics:
- Lower volatility (70% less than London session)
- Cleaner technical moves
- Less news interference
- Clear institutional order flows
My strategy exploits the psychological patterns of Asian trading desks that follow strict protocols at session open.
Automation: Work Smarter, Not Harder 🤖
While I developed this strategy manually, I’ve since automated it.
After thousands of hours of backtesting across 20 years of market data, I’ve developed a suite of 16 specialized trading EAs available here.
These aren’t just Tokyo session bots—they work across all sessions using H4 charts for longer-term moves (200-350 pips).
What makes them special?
- Multi-currency coverage (EUR/USD, GBP/USD, USD/CHF, USD/JPY)
- Each pair has 3-4 dedicated algorithms
- Internal diversification to minimize correlation
- Proven performance through multiple market cycles
And here’s the kicker—I’m offering this entire portfolio completely FREE.
Why? Because I believe in adding value first.
Potential Pitfalls to Avoid ⛔
Even with a 67% win rate, these mistakes will destroy your account:
- Overtrading the first hour
- Ignoring pre-Tokyo session price action
- Trading during major news events
- Using excessive leverage
- Chasing missed entries
Next Steps to Implement This Strategy 👣
- Practice on demo for at least 20 trading sessions
- Journal every trade with screenshots
- Start with micro-lots when going live
- Gradually increase position size as you prove consistency
- Consider automating once you understand the mechanics
Conclusion 🏁
The 5-minute Tokyo momentum strategy offers retail traders a genuine edge.
With proper execution, you can expect 10-25 pips per winning trade, with 3-5 potential setups each week.
Remember: consistency beats occasional home runs.
If you want to see how I’ve automated this and my other strategies, check out my free EA portfolio with 16 proven algorithms.
For those wanting to execute manually, make sure you’re using a broker with competitive spreads from my tested broker list.
Stay disciplined, stay patient, and let the Tokyo momentum work for you.