#Japan #Tokyo #MacroTrade #UJ-Macro5 #USD/JPY

Introduction

On October 15, 2025, MacroTrade INSTRUMENTS introduced a groundbreaking composite index named UJ-Macro5 (UJ5) that consolidates macroeconomic factors influencing the USD/JPY exchange rate. Designed to provide clarity in a volatile market, UJ5 serves both short and long-term traders by enabling a structured analysis of various economic indicators.

Understanding UJ-Macro5

UJ5 integrates five critical economic drivers:
1. US-JP 2-Year Yield Differential (US02Y - JP02Y)
2. US-JP 10-Year Yield Differential (US10Y - JP10Y)
3. Real Interest Rate Differential (TIPS - JGBi)
4. FF Futures/OIS (short-term interest rate expectations)
5. DXY (Dollar Index)

The index normalizes these drivers using a z-score, depicted as a gradient scale where positive values are represented in red and negative values in blue. This visual representation allows traders to quickly assess market bias and strength based on a unified metric.

Adaptable Features

UJ5 caters to various trading environments through its versatile mode switching, accommodating everything from scalping to long-term trading strategies. Its functionality includes:

• - Switching between micro (seconds to minutes), short term (daily), and long-term modes.
• - Automatic re-weighting during data gaps ensures continuous operation despite missing sources, maintaining reliability.
• - Non-repainting feature provides fixed values for confirmed bars, reducing price fluctuation in unconfirmed bars.

Technical Differentiation

Unlike traditional indices, UJ5 is not a single indicator. It synchronizes data from multiple drivers to yield a comprehensive directional filter for USD/JPY, which is particularly advantageous in complex market scenarios. The z-normalization allows users to compare varying metrics—like interest rate basis points and index points—by placing them all on a standardized scale. This feature empowers traders to evaluate contribution and perform historical comparisons effortlessly.

Real-Time Application

Designed for practical implementation, UJ5 utilizes real-time data acquisition for its shortest time frames, while the daily-only sources such as TIPS are weighted down to uphold continuity. The index's transparency fosters collaborative agreement within trading desks, given that it openly displays factors, weights, and contributions. It complements daily fair value models with its ability to visualize changes within seconds to minutes.

Introduction of UJ5-3

Launching concurrently is UJ5-3, a futures version that provides updates in seconds rather than minutes, enhancing responsiveness for high-frequency traders. This version focuses primarily on futures proxies to ensure rapid decision-making capabilities.

Benefits of Using UJ5

UJ5 significantly reduces the risks of directional missteps by allowing for immediate identification of buying or selling priorities based on visual cues from the gradient and zero line. The unified display of key economic indicators helps teams arrive at coordinated decisions effectively. The flexibility of mode switching and weight adjustment supports all trading strategies from scalping to swing trading, minimizing data risk through its automatic re-weighting feature.

Usage Instructions

UJ5 is available as a cloud software and API, with support accessible through the official LINE account. This offers a robust solution for individual traders up to large financial institutions, ensuring versatile use across different trading styles.
For personalized utilization or to understand customization options regarding factor replacement and weight optimization, users are encouraged to reach out through the website.

Future Developments

MacroTrade INSTRUMENTS plans to implement quarterly factor replacements and dynamic weighting adjustments. Future expansions will include tailored Macro indicators for EUR/USD, Bitcoin, and a 10-factor extension of UJ-Macro5.

Disclaimer

This release is solely for informational purposes and does not constitute investment advice or solicitation. Availability, latency, and rights of market data are dependent on respective platforms and exchange agreements.