Does Japan have the capability to make a manned 5th gen aircraft?

they’ll most likely buy F-35, but does their aviation industry really have the ability to make a manned 5th gen fighter of their own? or is that mock up the farthest they will get.

Budget: Japanese defense expenditures about 2/3rds of Russia, still within top 10 in world
AESA: Experience with Mitsubishi J/APG-1
IRST: Experimenting on F-15s
Engine: one or two afterburning versions of IHI XF7-10 Turbofan?
Domestic weapons: AAM-3, AAM-4, maybe ASM-2?

because they are defensive, probably nothing more than air superiority and maybe anti shipping abilities needed. Probably no intention to go in to surpress air defenses of some other country. This may allow a simpler design?
budget may be 2/3d of Russia, but labor costs much higher.