TD Research stopped out of its short USD/JPY exposure in spot at 134.30, but likes owning a small short exposure into next week's BoJ meeting.

"We were stopped out of our short USDJPY position (-2.05% including carry) which we entered at the March Fed meeting on the basis that terminal rate pricing was capped and market pricing further out the SOFR curve would be asymmetric (biased to easing)," TD notes. 

"That said, we do not think the BOJ will provide advance warning for a shift, so it may be worth owning small JPY upside into the meeting. For now, we respect the stop and will consider re-engaging once the positioning squeeze looks more complete," TD adds.