At Three Percent Chad W. Post has been talking about the Japanese Literature Publishing Project. This is an initiative of the Japanese Agency for Cultural Affairs aimed at bringing Japanese writers to the attention of the rest of the world. Post lists a number of newly translated books, several of which are of interest to us.
Punk Samurai and the Cult (Panku samurai kirarete soro) by Ko Machida is described as a fantasy.
Colorful (Karafuru) by Eto Mori is described as a juvenile fantasy.
It isn’t clear whether Ghosts and Lower-class Samurai and Other Stories (Yukensho) by Hideyuki Kikuchi is fantastical or not, but some of Kikuchi’s novels are the basis of the highly successful manga and anime series, Vampire Hunter D.