FX.co ★ EUR/USD analysis for February 26 2021 - Strong downside on the EUR and potential for the test of downside target at 1.2035

The BOJ last bought ETFs on 28 January and held off buying more until today

The Japanese central bank bought £5 million worth of ETFs today amid the 4% drop in the Nikkei, showing some signs that they may be more flexible with ETF purchases.

That said, they still hold a commitment to buy roughly £6 trillion worth of ETFs at an annual average pace so that is something to consider unless communicated otherwise. I mean, what better timing to buy more when the market is down. *wink* *wink*

Further Development

Analyzing the current trading chart of EUR/USD, I found that there is strong reversal day for the EUR and that sellers are in total control today.

My advice is to watch for selling opportunities on the rallies with the downside target at 1,2035.

Key Levels:

Resistance: 1,2110

Support levels: 1,2035