Japan Rally ‘Has Further to Go’: Godfrey

The rally in Japanese equities appears poised to continue, Gemma Godfrey of Brooks Macdonald Asset Management said Monday.

"It's a focus for the market, and it definitely has further to go because there's a lot of conviction out there that leadership can actually … achieve its inflation targets," she said. "And if it does, this will boost consumption by telling people that prices are going to rise, you need to go out and buy now, you can't wait for prices to fall. "

On CNBC's "Fast Money," Godfrey added that the Japanese government's actions will likely help to boost margins.

"And it a low-growth environment terribly attractive," he said.

Godfrey also said the current investment level in Japan's stock market by Japanese pension funds stood around 10 percent, a level that could see them increase their exposure.

"And when that happens, you could see substantial inflows, even from these levels," she said.

Godfrey said that a broadening of the rally hasn't yet occurred.

"We want to see foreign inflows come in. We want to see Japanese pension funds come in," she said. "And we want to see greater upside in the small- and mid-caps, which are currently under-brokered, and there's a lot of opportunity there to exploit mispricings."

Trader disclosure: On April 5, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Stephen Weiss is long BAC; Stephen Weiss is long C; Stephen Weiss is long BBRY; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long CSCO; Stephanie Link is long GE; Stephanie Link is long IBM; Simon Baker is long AAPL; Simon Baker is long BAC; Simon Baker is long GS; Simon Baker is long SBUX; Simon Baker is long DELL; Simon Baker is long WFM; Josh Brown is long AAPL; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long TLT; Josh Brown is long TGT; Josh Brown is long JNJ; Josh Brown is long DXJ; Josh Brown message: "No shorts, no banking."