The Japanese yen rose in Asian trading on Thursday against a basket of major and minor currencies, resuming its gains after pausing on Wednesday against the U.S. dollar, following data showing a rise in wages in the worlds fourth-largest economy.

The figures pointed to mounting inflationary pressures on policymakers at the Bank of Japan, increasing the likelihood that the central bank will raise interest rates at its final meeting of the year in December.

Price Overview

USD/JPY: The U.S. dollar fell 0.2% to 153.79 yen, down from an opening level of 154.11, after touching an intraday high of 154.14.

On Wednesday, the yen closed 0.3% lower versus the dollar, after rising 0.35% the previous day as part of a recovery from an eight-month low of 154.48.

Japanese Wages

Japans Ministry of Labor reported Thursday that total monthly cash earnings and a separate measure of full-time wages rose 1.9% year-on-year in September, in line with market expectations, after a 1.3% increase in August.

The recovery in wages could pave the way for further price gains and faster inflation in the months ahead. Undoubtedly, growing inflationary pressure on the Bank of Japan is strengthening the case for an upcoming rate hike.

Japanese Interest Rates

Following the data, market pricing for a 25-basis-point rate increase at the Bank of Japans December meeting rose from 58% to 65%.

To reassess those expectations, investors are awaiting further data on inflation, unemployment, and wage trends in Japan, as well as comments from Bank of Japan officials.