Yes, Japan is continuing to progress their space program. Jaxa (Japanese Aerospace Exploration Agency) recently monitored a probe they sent to Venus. On December 7th, 2010 their probe failed to enter Venus’ orbit. JAXA is currently researching why the orbit attempt failed and is looking for solutions to the problem. JAXA will attempt to reinsert their probe into Venus’ orbit in six years, their next opportunity.
If the question is about Japan’s space program for solar power, it was still in the works as of Nov. 2009. I could not find anything indicating either progress or abandonment of the program since that time, but there’s really no reason to think it is not ongoing.
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