As of December 1, 2011 the Google Translate option in Japan Goggles and China Goggles will no longer give translations. This is due to a decision by Goggle to completely shut off the free translation service to all third party applications on that date.
You can read more about it at:
Naturally, their decision caused quite a reaction from the developer community as you can see at:
Fortunately, the Goggles’ built-in dictionary will remain perfectly functional. With more than 100 000 entries for each app, the Goggles should work well in most cases. Besides, there is no longer a need for the Goggles to access the Internet which may be useful if you are on an expensive data plan.