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They pay with yen, the notes and coins they use are:

Notes: 10,000 yen, 5,000 yen, 2,000 yen 1,000 yen

Coins: 500 yen, 100 yen, 50 yen, 10 yen, 5 yen, 1 yen

Q: What type of notes and coins do the japanses use?

This answer is:

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They pay with yen, the notes and coins they use are:

Notes: 10,000 yen, 5,000 yen, 2,000 yen 1,000 yen

Coins: 500 yen, 100 yen, 50 yen, 10 yen, 5 yen, 1 yen

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the Yen.

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Yen
The Japanese currency is the Yen, literally meaning "circle". One yen corresponds to 100 sen. However, sen are not used in everyday life anymore.

Coins come in 1 Yen, 5 Yen, 10 Yen, 50 Yen, 100 Yen and 500 Yen.

Bills come in 1,000 Yen, 2,000 Yen (very rare), 5,000 Yen and 10,000 Yen.

Vending machines usually accept 10 Yen, 50 Yen, 100 Yen and 500 Yen coins, as well as 1,000 Yen bills. Some newer machines also accept 5,000 Yen and 10,000 Yen bills.

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Well, since yen is Japanese money, 500 yen is 500 yen in Japanese!!

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Japan uses yen.

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