Japan Inflation Expectations Rise as BOJ Rate Hike Timing Faces Uncertainty 
RBA's Hauser Flags Uncertainty on Rate Settings Amid Iran War Economic Risks 
RBI Holds Interest Rates Steady Amid Middle East Tensions and Global Uncertainty 
Bank of Japan Governor Signals Accommodative Stance Amid Negative Real Rates 
BOJ Rate Decision in Focus as Yen, Inflation, and Nikkei Hang in Balance 
RBNZ Holds Rates at 2.25% as Middle East Conflict Fuels Inflation Concerns 
Citigroup Delays Fed Rate Cut Forecast Amid Strong Jobs Data and Inflation Concerns 
ECB Warns of Rising Inflation Risks Amid Iran War Energy Shock 
Bank of Japan's Ueda Flags Low Real Interest Rates as Key Factor in Rate Hike Timing 
Morgan Stanley: Fed Rate Cuts Still on Track Despite Oil-Driven Inflation 
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.
