What is the right course of action?

You answered correctly. In this scenario, you are allowed to move first because you are on the priority road, as indicated by the yellow diamond traffic sign ahead. The yellow car approaching from the right is facing a yield (triangle) sign, meaning it must give way to you. Whenever you are on the priority road and other vehicles have a yield sign, you have the right of way. This is a key rule to remember at intersections with clear right-of-way signs.