While it is important to always have a bit of cash in your pockets when travelling in Japan, it is less relevant to have it when in Tokyo, as these days you can make almost all payments by credit card or IC card. However this changes significantly when you head to rural Japan or even Kyoto. If you need to pay for a taxi, it will usually have to be done in cash, unless you use a transportation app such as Uber.
In case you run out of cash while in Japan, you can always head over to a convenience store (Lawson, 7-Eleven, Family Mart) since many of them have an ATM machine to withdraw cash. However, often the minimum you can withdraw at once is 10,000 Japanese yen. But don't worry, if you spot a Japanese Post Office the ATMs there will also accept foreign cards, and you can withdraw as little as 1000 yen at a time.
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