FXstreet.com (Barcelona) - Asia opening is favoring Dollar and Japanese Yen, with both currencies recoup some ground after the important rallies against them earlier in the day. Euro rebounded just in the 1.2660 level, while Gbp rose to 1.4200 before beginning a downside correction. Swiss Franc is also losing ground after reaching the 1.1642 during Sydney session.

For the European session, both BoE and ECB are widely expected to cut its overnight rate by 0,50 basis points to 0.5% and 1.5%. Typically, expectations for rate decisions are already priced in by this time. However, expect Euro to be highly volatile once Jean-Claude Trichet discloses more details about the ongoing situation in the euro-zone, as recession could be well longer than expected

EUR /USD - Back from 1.2660, under 1.2600 the pair could regain the downside, with supports at 1.2560/70 zone, followed by 1.2536 and 1.2490 zone. Above 1.2660, consider resistances at 1.2720, 1.2784 and 1.2838 roof of the daily descendant channel.

GBP/USD - Back form 1.4200, the pair is in the tough congestion zone between 1.4135/60. Under this zone consider supports at 1.4090, followed by 1.4058, 1.4026 and 1.3990. Above 1.4160, consider resistances at 1.4210 and 1.4282, before facing the 1.4330 congestion zone.

USD/JPY - The upside trend remains healthy in the pair, quoting right now around 99.30. Above Wednesday's high, at 99.47 consider resistances at 99.80 zone and above 100.10. Moving in an ascendant channel, the roof lays around 100.50 where we also have a weekly high; that zone should offer some rebound before any continuation. Under 99.00, next supports will be at 98.58, the 98.28, followed by 97.56 and finally 97.20 zone.