Not a bytecode translator
The answers to your questions are: "see below, sort of, and no".
It's just a program that takes some input and produces some output. The input is a Forth script. Except for some very major systems, it's rare to actually produce bytecode. jRuby, Clojure, Scala .. big systems like that do produce bytecode.
However your Forth interpreter is probably just that: a script interpreter that happens to be written in java. The input it accepts is a program of sorts, so you do end up with a nice double-indirect execution. Forth executing via bytecode interpreter executing via jvm running on the CPU.
Now, if you ran that on a CPU emulator, or wrote an interpreter in Forth, you could make it triple-indirect. (And in a sense it is already, because your Intel CPU is translating most x86 opcodes into micro-ops before executing them. :-)
Anyway, the point is that a program written in a rather static language like java might want to take some complex user input and execute it, or perhaps the author of the program has things that are more easily done in forth, and this allows him to write in both java and forth.
You should think about all of this until you understand it.