We developed a new system to monitor and forecast coastal and open-ocean states around Japan for operational use by the Japan Meteorological Agency. The system consists of an eddy-resolving analysis model based on four-dimensional variational assimilation and a high (2-km) resolution forecast model covering Japanese coastal areas that incorporates an initialization scheme with temporal and spatial filtering. Assimilation and forecast experiments were performed for 2008 to 2017, and the results were validated against various observation datasets. The assimilation results captured well the observed variability in sea surface temperature, coastal sea level, volume transport, and sea ice. Furthermore, the volume budget for the Japan Sea was significantly improved by the use of the 2-km resolution forecast model compared with the 10-km resolution analysis model. The forecast results indicate that this system has a predictive limit longer than 1 month in many areas, including in the Kuroshio current area south of Japan and the southern Japan Sea. In the forecast results of case studies, the 2017 Kuroshio large meander was well predicted, and warm water intrusions accompanying Kuroshio path variations south of Japan were also successfully reproduced. Sea ice forecasts for the Sea of Okhotsk largely captured the evolution of sea ice in late winter, but sea ice in early winter included relatively large errors. This system has high potential to meet operational requirements for monitoring and forecasting ocean phenomena at both meso- and coastal scales.