It seems, at least, that far more is being written than translated. I think you might know a writer Ms. Banana Yoshimoto. She is one of the best-selling authors in Japan. Her most famous novel, Kitchen was translated into English several years ago. But I was amazed when I saw a photo of a geisha on the cover jacket of the translated version, even though her story is not exotic at all.
American people enjoy Japanese comics and animations.
Many are translated into English. On the other hand, for Japanese entertainment novel writers, it is very hard to find a good professional translator. There are some people who can translate classic literature, or non-genre mainstream fiction, like Yukio Mishima or Kensaburo Oe, but there are very few people who can translate Japanese mystery, horror or science fiction. But I think my novel is enjoyable to an international audience since my story is entertaining. I tried to write some sociological discussions about the Japanese medical system in Parasite Eve .