FXStreet (Córdoba) - USD/JPY dropped quickly to 122.64, hitting the lowest level since last Friday as the US dollar declined across the board, but then rebounded and currently is trading around 123.00, back in positive territory for the day. Stocks in the US are in negative territory attempting to move off session lows. The Dow Jones is down 0.79% and the Nasdaq falls 0.40%. In Europe, markets are about to end with important losses. USD/JPY outlook In the short-term the pair still holds a bearish tone, as it keeps making lower lows, correcting after last week 250-pips rally but the decline has been limited. From Monday’s highs it has fallen less than 70 pips. The medium term bias continues to favor the US dollar. To the upside, the key resistance is located 123.10/15, where the downtrend line from Monday's highs currently stands; a break higher could signal the resume of the rally. For more information, read our latest forex news.