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>Can homeless Japanese set up a tent on a sidewalk in the heart of Tokyo?

I don't know, but I seriously doubt it.

I generally only see them in certain public parks. There's one weird encampment in some woods next to one of the rivers, in a large park that's on a flood plain; not exactly easy to find or heavily trafficked.

>Can homeless Japanese set up a tent on a sidewalk in the heart of Tokyo?

Yes. I encountered a homeless person in the CBD of Tokyo, sleeping in the bushes of a (very small) divider between a main road. Almost totally hidden, by those bushes. With enough items to look like they'd been there a while.

Same in London. You see large groups of them under bridges sometimes, but then a few days later they're all rounded up and just gone. I'd like to believe that they're under Shelter protection, but the cynic in me k ows that they've just been relocated out of the public eye.