RBA Holds Rates but Warns of Rising Inflation Pressures 
ECB Signals Steady Rates Ahead as Policymakers Warn of Inflation Risks 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
Hong Kong Cuts Base Rate as HKMA Follows U.S. Federal Reserve Move 
BOJ Poised for Historic Rate Hike as Japan Signals Shift Toward Monetary Normalization 
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.
