How to trade first hours of Asian trade session

With the opening of the markets today, JPY is expected to start with a positive gauge. Basically, the reason for this will be the accumulated stock market negativity, which will be shifted to Asia with the opening of stock exchange sessions. During the Asian session, the highest JPY growth is expected against AUD. The strong downward trend in AUD/JPY will be maintained, with any upward adjustment being used to add to the short positions. With China's stock exchanges going up and down, JPY's purchases will be tightened to hedge long positions in Chinese assets.

In the first minutes after China's opening, it is good to look for short positions in Chinese indices, given the negativism that will dominate the stock markets. I expect the drops to be sustained by the end of the stock exchange session, not excluding Beijing from returning to US rates in the early hours. Such an action would have an additional negative impact on the indices and positively on the JPY.

After the stock market declines in Asia, I expect the negative sentiment to be shifted to Europe, where we can look for Short Positioning of Automobile Companies either individually or through ETF's across the sector. This suggests that European traders will once again focus their attention on the JPY as a currency of refuge. At the launch of the interbank market in Europe - 09:00, JPY's purchases will again be in vogue. The trade strategy in such situations implies waiting for a downward adjustment at the end of the Asian stock market and positioning Long at the start of the European session.

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