It is a nice looking sword. But is definitely not a World War 2 era Japanese military sword.
The tsuba or hand guard does not appear to be of any traditional Japanese design.
the habaki is usually a thin copper wrapping around the base of the blade which is meant to hold the blade tightly into the scabbard. Yours is definitely not traditional and does not look very effective.
I can not see what type of Menkui (animal or person figure) is beneath the wrappings on the handle. But it would help with identification.
My conclusion is that it is probably decorative. But I am no expert. It could very well be a pre-WW2 example that I just haven't ever seen before. You might wish to send some photos to a Japanese sword forum for a more conclusive analysis.