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okay I cantfind a straight answer so I figured I would ask here . I have a Japanese 3ds and Pokemon y game. I am playing Pokemon Y in English language on my Japanese game and 3ds. my question is are my pokmeon still considered Japanese Pokemon. and if someone were to trade me a ditto from their American 3ds to my Japanese Pokemon game would the masuda method work in this case.

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I'm pretty sure it depends on the language your game is in, not where your game came from. So you would need to trade with someone playing in Japanese (for example) for the Masuda Method to come into play. I'm not completly sure, though, which is why I am only commenting.

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Masuda Method is determined in Gen 6 onwards from the language chosen at the start of the game, not what region the cartridge came from.

The Pokemon must be in a language other than your current system language in order for it to count. This means that Trading UK<-->US or other English-speaking countries won't work.

Source

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This hasn't been confirmed yet, however, I have looked into this mystery for quite a while since the debut of X and Y and I think I can safely confirm that the Pokemon have to be region-locked from different-language cartridges. I think it's rather evident as to why as well.

My Illogical Theory

Firstly, it says on the cartridge which region it comes from:
enter image description here
If you look close enough, below the 'CE' letter thingies, reads 'EUR' for a European cartridge. This appears on all Pokemon games, and the Masuda Method depends on the country that appears there, really.

This is most likely the same with X and Y - the language won't matter. It will still depend on the region lock.

Next, I think this might mean something:
>If both Pokémon are foreign to the cartridge but are both from the same country, then the Masuda method will not take effect. - Source

So different-language Pokemon from in-game trades like from Lt. Surge in HGSS, are still considered as the same country, and will not contribute to the benefits of the Masuda Method.

Now, in Pokemon X and Y, different-language-same-country Pokemon appear all the time if you choose Japanese for your language on an Australian game - this is just like Lt. Surge giving you a foreign Pokemon - it will still be from the same region, just a different language - therefore nullifying the effect of the Masuda Method here.

And a less powerful point, finally it seems rather nationalist for a different-language game to benefit the Masuda Method. There are plenty of people in the world that don't speak English, but still live in an English-speaking countries. This seems a little offensive to the population of people who are in the mentioned circumstances.

It should also be noted that the Masuda Method was made to enhance the use of the GTS:
>The Masuda method was likely coded as incentive for players to use the GTS's international trading services.

Anyone who has two copies of the game can make one English and one Nihongo, and they can just trade over some Pokemon and BAM! Instead Masuda Method. It seems WAY to easy.

So to conclude, if trends continue, then the Masuda Method depends on the region the cartridge was from.

Hope I helped. :)
Source: Above Link

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I just want to note this isn't confirmed, but incredibly likely. :)
thank you for your response, and  your theory does make sense since if it was based on the language selected it would make the gts pretty much useless