It's a law
The Japanese police can ask for your passport while you are walking on the street and if you cannot identify yourself you get fined & it can cost a LOT. So don't forget it.
It also comes in handy when you are shopping tax free. As a lot of products in Japan can be purchased tax free if you have your passport with you.
Go check out my guide for the best free things to do as well as itineraries and travel tips to make your trip unforgettable.