An externally driven nonlinear Fabry-Perot interferometer with bistable transmission characteristics is probed through a weak optical field. The nonlinear interaction among the counterpropagating pump beams and the probe beam generates the phase-conjugated beam through intracavity degenerate four-wave mixing. It is shown that the phase-conjugated reflectivity displays bistability and that hysteresis as the driving field is varied in a continuous manner. The analysis is carried out in the mean-field approximation and is valid for the case of low absorption and a high-

cavity. Both the dispersive and the absorptive effects arising due to saturation of the one-photon resonance are included, and their effect on the phase-conjugated reflectivity is discussed. The results show that, when a bistable device switches on, the reflectivity decreases by a few orders of magnitude. We discuss possible applications and suggest materials where the proposed effects can be seen.