That graph is by decade; the actual valley was probably more around 1965 because That's when a new immigration act was passed that greatly loosened the requirements and immigration rates began skyrocketing to where they are today at around 14.8%, with rising anti-immigrant sentiment emerging for the same reasons, at almost exactly the same percent. Note that 14.8% includes all groups, including illegal aliens. The number of foreign born residents in Japan is, and has been, much lower.
[1] - https://www.census.gov/library/stories/2026/07/foreign-born-...