The yen fell on Monday, extending losses from a volatile session at the end of last week after the Bank of Japan (BOJ) loosened its grip on interest rates, but was still on track to reverse three consecutive months of declines. On Friday, the yen went into a tailspin as traders tried to determine the implications of the BOJ's move to maintain ultra-low rates while making its bond yield curve control (YCC) policy more flexible and loosening its defence of a long-term rate cap. "The BOJ threw a curve ball into the market ... with its cosmetic change to YCC - in essence, it was a brilliant move by the central bank, and they've managed to bridge the volatility that would come with a straight change to a -/+ 1% range in the YCC band," said Chris Weston, head of research at Pepperstone.