No. The Xbox 360 is region-locked for physical game discs. The Elder Scrolls IV: Oblivion was released with distinct region codes:
A Japanese console (NTSC-J) will reject a North American disc (NTSC-U/C) with a "Disc unreadable" or "Region error" message. The console's region is hardcoded; it cannot be changed via software settings.
Recommendation: Purchase the Japanese physical copy or the digital version from the Japanese Microsoft Store on a modern Xbox.