Japan will release its latest CPI report on Thursday, and this strategist has a trading plan.
It's been a while, to say the least, since Japan had a real inflation problem. On Thursday, investors will get an up to date look at core Japanese CPI, and Amelia Bourdeau, director of foreign exchange at Westpac Institutional Bank, has a trading plan.
If core CPI comes in stronger than expected, Bourdeau thinks the Bank of Japan will leave policy unchanged, and she would sell the dollar against the yen, she told CNBC's Scott Wapner. But if it's lower than expected, she wants to do the reverse, since that would increase the chances of more easing by the Bank of Japan - which would weaken the yen.
"Of the scenarios, I'm choosing number two, the weak core CPI," Bourdeau says, partly because the Bank of Japan just added two board members who are in favor of easier monetary policy to boost the economy.