The following sequence (after your yyp) seems to do what you want:
v% - visually select from the {
under the cursor to the corresponding }
zC - close all folds under the cursor recursively (unfortunately, this includes the outer folds that you want to remain open)
zv - open just enough folds to display the cursor line
zc - close the single outer fold of the new material
Of course, you'd want to map this to some other key combination in your vimrc.