The word for Iceland in Japanese is Aisurando (アイスランド) and Reykjavik is Reikyabiku (レイキャビク). Check the following section for more words related to Iceland.
Interesting facts about Iceland and Japan
Japan and Iceland established diplomatic relations in 1956 and signed a free-trade agreement in 2005. Trade between the two countries aren’t massive, but Japan imports fish and steel from Iceland, while Iceland imports cars and electronics from Japan.
A number of Japanese corporations, such as Toyota, Sony, Honda, and Toshiba have a presence in Iceland.
Read more about their relations here.