Hi. The Sony BDP-S350 can decode Dolby TrueHD, but it can't decode DTS-HD MA. It can pass both out as bitstream, though.
The Yamaha RX-Z7 can indeed decode Dolby TrueHD and DTS-HD MA, so it would work just fine with your blu-ray player. There are several less expensive receivers that can also decode those codecs, if you were interested.