Reddit reviews The Rough Guide to Japan Fourth Edition (Rough Guide Travel Guides)
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Used Book in Good Condition
Yes, learn as much Japanese as you possibly can before coming. Many foreigners come here without knowing Japanese and have a miserable trip. You seem very open-minded and adventurous, so you'll probably be fine!
The two-week JR pass is 550 Euros right now. The trip back from Gunma is going to probably run about 100 Euros (by bus). So that puts you at about 1350 Euros left.
Your stay in Gunma is free so you have a budget of 90 Euros/day, which is easy to manage.
Cheap, good, fun hostels run about 25 Euro/night. Read up everything and anything you can on hostels - they are your best friend. Since you don't speak the language well, I highly recommend eating at least one meal a day at the hostel (it's usually a very fair price for very mediocre food) and try and keep all your meals below 1000 yen (which is super easy to do).
If you're a drinker, stay away from beer (taxes make it very expensive) and learn to appreciate very cheap whiskeys or shochu. You can get about 6 drinks worth of whiskey for 299 yen from any convenience store in the country, so just do that outside under the stars and socialize for cheap at night.
Make friends with locals and get them to take you out! Tell them you don't have much money but would love to see more of their city. You'll probably make some great friends and get some free meals out of it. ;)
Smile and be friendly to everyone and you can have a wonderful trip on this budget, I think.
This is the best guidebook I know. It has the #s of all the hostels you'll need.
Let me know if you have any other questions!