I guess I am in agreement with the idea of politely asking first if someone can speak Japanese or not. It seems like the most logical thing to do.
I know that Americans, in general, tend to have this image of being the ignorant citizens who go around asking non-"American" appearing persons whether or not they can speak English, which can come off easily as an insult. However, (assuming the person is not trying to be a jerk) it is just a matter of clarifying the possible level of communication between the persons involved.
I don't thing that it is a matter of insult, but finding out a vital piece of information for accurate and respectful communication.
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