You can find translations of Japanese literature into English (and French!) on the third floor of Van Pelt, east side of the library. (Turn right out of the main elevators and go all the way to the end.) Japanese language and literature are call numbers PL700s-PL800s.
These books contain both original Japanese text and English translations.
If you don't know what you're looking for, try coming to the library and just browsing around! You can find literature in these call numbers:
Note that many of the contemporary novels are now stored off site in LIBRA, so you'll have to request them via the Franklin catalog and have them delivered to circulation for you.
Penn collects many prize-winning novels, including the series 太宰治賞, 川端康成文学賞, and 芥川賞. (The latter two series have ended, although the prizes continue to be awarded every year.) We also have a series of famous prize winners called 文学賞受賞・名作集成. Some other well known literary prizes include the following, where Wikipedia lists their winners:
