BOJ Rate Hike Expectations Rise Ahead of September Meeting 
BOJ Minutes Signal More Rate Hikes as Inflation Risks Grow 
Chile Central Bank Holds Interest Rate at 4.5% as Inflation and Global Risks Persist 
Brazil Cuts Selic Rate to 14% as Inflation Eases but Risks Persist 
RBI Holds Repo Rate at 5.25% as Inflation Risks and Global Uncertainty Persist 
ECB Expected to Hold Rates as Middle East Tensions Keep September Hike in Focus 
USDJPY was a notable beneficiary from Yellen's policy musings and renewed speculative enthusiasm to own the cross as the FED and BoJ meetings have prevented the cross from retracing in line with the rest of the dollar complex.
The yen backed away from one-week lows against the dollar on Wednesday amid doubts that possible further easing by the Bank of Japan would cause a significant downside for the currency.
While in some senses understandable, speculative demand for USD/JPY seems at odds with the relative performance of the US and Japanese bond markets whereby 10Y JGB yields have pushed to their highest levels since March and the spread to UST has remained closed to the lows for the year.
USDJPY is trading at 102.810, up 0.23% after rising as high as 103.35 earlier, the most since September 6.
So while the market is happy to buy USD/JPY as a positively convex play on the BoJ meeting, the result of such demand is that USD/JPY is now 2% expensive compared to the 10Y rate spread. Hold a USD/JPY put fly (100x98x96 in 1x2x1 notional) with 1w expiry.
