Yesterday, we saw USD/JPY attempting to complete a double bottom as Yellen testified in front of the senate. Today, she is in front of the house, and will complete this semi-annual 2-day grilling. USD/JPY 1H Chart 6/22(click to enlarge)Double Bottom Complete; Central Pivot Respected: The 1H chart shows the market pushing USD/JPY above the double bottom, but failing to clear 105. Essentially, USD/JPY has completed the double bottom, but is still consolidating. The central pivot of the consolidation pattern is 104.20. If price can hold above this level, a double bottom is still a possible scenario. However, if price falls below 104.20, we should anticipate pressure back towards the 103.55 low. With the prevailing trend being bearish, there is strong risk of price breaking below 103.55. Reaction after Yellen: It will be important to see if 104.20 indeed holds after Yellen's second day testifying in front of congress. It seems like the market wants to push USD/JPY higher, but is tentative. I don't think there will be any surprises from Yellen. The market has already priced in the "caution" her and the FOMC is using as it delays the rate hike campaign. Therefore if price holds above 104.20, there is a chance it will push towards 106. Limited Bullish Outlook: This bullish scenario is limited, and is within the context of an overall bearish USD/JPY. The rally would simply be a bullish correction, likely to be faded as it approaches 106. The daily chart expresses this outlook. The prevailing trend is bearish, but the RSI shows oversold condition and there was a bullish engulfing candle. These are signs that we could see a period of consolidation, which should include a degree of bullish correction at least to 106 (it should be noted that previous correction swings have been much stronger so 106 is a conservative bullish correction target). USD/JPY Daily Chart 6/22(click to enlarge)