IC Markets
The forex market technically never closes on a weekday, but liquidity is not constant. When a major financial centre is on holiday, the banks that make prices in that region step back, spreads widen, and price can move more on less flow. Asia has several multi-day holiday periods that matter, and knowing them ahead of time lets you reduce size or step aside rather than being surprised.
The holidays that matter most
| Holiday | Region / market closed | When | Pairs most affected |
|---|---|---|---|
| Chinese New Year | Mainland China ~1 week, Hong Kong 2-3 days | Late Jan / Feb | USD/CNH, AUD pairs, gold physical demand |
| Golden Week | Japan, several days | Late Apr / early May | USD/JPY, all JPY crosses |
| Diwali | India, 1-2 days | Oct / Nov | USD/INR (exchange-traded), gold |
| Eid al-Fitr / Eid al-Adha | Indonesia, Malaysia and others, multi-day | Dates shift yearly | USD/IDR, USD/MYR, regional flow |
| Year-end (24 Dec - 2 Jan) | Global, reduced staffing | Late Dec | All pairs; very thin, gappy |
What actually happens
- Spreads widen. Fewer banks quoting means a bigger gap between bid and offer, worst on the pairs tied to the closed market.
- Moves get exaggerated. A modest order pushes price further in a thin book, and there are fewer participants to fade it, so ranges can be misleadingly wide or misleadingly quiet.
- Technical setups are less reliable. Levels get broken and reclaimed on low volume, producing false signals.
- Reopening moves. When the closed market returns, a backlog of news can be priced in one go, causing a gap or a sharp session.
Golden Week specifically
Japan's Golden Week is a run of public holidays in late April and early May. With Japanese banks and institutions out for several days, USD/JPY and every JPY cross trades thinner. Historically this has occasionally coincided with sharp yen moves precisely because the market is thin and a shock has less liquidity to absorb it. If you trade yen pairs, treat Golden Week like a mini Chinese New Year: reduce size, widen stops, and be cautious about holding through it.
Kenta stopped taking normal-sized USD/JPY positions during Golden Week after a year when the yen moved sharply on thin liquidity while Tokyo was closed and his stop filled several pips past its level. He now either flattens JPY positions before the holidays or cuts them to a quarter size with a wide stop, and treats the week as a low-conviction period.
How to adjust
- Keep a holiday calendar for the main Asian financial centres, not just your own country's holidays.
- In the days around a major regional closure, cut position size for the affected pairs and widen stops for slippage.
- Avoid initiating breakout trades on the affected pairs during the thin window; false breaks are more common.
- Watch the reopening session for an outsized move as backed-up news is absorbed.
- The year-end period (roughly 24 December to 2 January) is thin globally; many traders simply stand aside.
Eid dates move each year with the Islamic calendar, and the length of the public holiday varies by country. For Indonesia and Malaysia in particular, the Eid al-Fitr period is a multi-day slowdown in regional flow; check the specific dates ahead of time.
Frequently asked
Does forex close on public holidays?
The market stays open, but when a major financial centre is on holiday the banks there stop quoting prices, so liquidity drops, spreads widen, and moves can be exaggerated on the affected pairs.
Which Asian holidays affect forex the most?
Chinese New Year (USD/CNH and regional flow, about a week), Japan's Golden Week (all JPY pairs, several days), and the global year-end period. Diwali and Eid have smaller, more localised effects.
Is it dangerous to trade during Golden Week?
It is thinner, so moves can be sharper and fills worse on JPY pairs. It is not off-limits, but reducing size, widening stops and avoiding breakout trades on yen pairs is prudent.
What happens when a closed market reopens?
A backlog of news from the holiday period can be priced in one go, producing a gap or a sharp opening session. It is worth watching rather than holding a position blindly into the reopen.
Should I just not trade during the year-end holidays?
Many traders stand aside from roughly 24 December to 2 January because liquidity is very thin globally, spreads are wide, and price action is unreliable. If you do trade, keep size small.