Yen weakens after BOJ shift

USD/JPY rose 0.5% to 141.88, with the yen extending Friday’s losses after a volatile session after the Bank of Japan widened its yield curve control policy, allowing the 10-year yield to move 0.5% around the 0% target.

The yen has weakened, after initial gains, as traders decided that this move could result in the BoJ maintaining its ultra-low rates for longer, especially after the central bank earlier Monday reportedly bought about $2 billion worth of bonds in an unscheduled operation.