> so if we used yahoo.co.jp it would be properly translated?
Yes.

> what is used for you atm?
I am using Google.

I heard that one of the reasons to switch to Yahoo.com from Google has a 
financial aspect.
If Canonical or Ubuntu community can sign a contract with Yahoo! Japan 
(yahoo.co.jp) not yahoo.com,
and if the revenue sharing with yahoo.co.jp is larger than Google,
it is nice to set yahoo.co.jp as default search provider.

But if we have no contract with yahoo.co.jp,
setting yahoo.co.jp as default would not do us much good.

Just a side note:
In Japan, 
the popularity of Google and Yahoo! Japan is about 50:50.
The users who are familiar with computers likes Google.
But normal users use Yahoo! Japan as search provider because Yahoo! Japan is a 
large portal site.

Correction:
Fumihito wrote,
>  - yahoo.co.jp 's engine provides by google.com. Its OEM.
it is not correct. The engine of yahoo.co.jp used to be google.com as OEM.
But now, google and yahoo.co.jp result is different.

-- 
default search provider for ja locale
https://bugs.launchpad.net/bugs/531332
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