first off the MJO is not the only factor that would suggest any increase in activity it is just one tool used, and in the past has shown some level of accuracy in predicting at a minimum and increase in over cloud cover or convection and the image below is just that. The OLR is for the most part the same has the MJO its just another way of saying the same thing. The OLR is the amount of cloud cover or convection so when the OLR is very negative then then MJO is very positive if you where to compare the MJO with the OLR you would see that they are the same, take for instance now, the MJO is negative and the OLR is positive(which is typically not as good for development). in other words july may turn out to be a rather busy month verses june which was forecast to be drier than average (which did happen) and july which is now forecast to be wetter than average hence a possible increase in activity come the first week of july.

