As a basic overview I would recommend Ronald Spector's Eagle Against the Sun: The American War with Japan. It provides a fantastic overview of the war and will give you the context of the battle as a whole. After that you simply have to read Jonathan Parshall's and Anthony Tull's Shattered Sword: The Untold Story of the Battle of Midway. Functionally all discussions about Midway currently start there.

That said in some ways answering why Japan lost is actually really easy. Japan lost because it took on a vastly superior enemy. Paul Kennedy's The Rise and Fall of the Great Powers (another great book although for your subject you'll only need the WWII chapter) highlights the vast economic disparity. Japan's only hope in winning the war was to hope that the Americans would simply give up and go home. During the war the US would put 141 carriers of all types into the water (mostly "baby" or "jeep" escort carriers). Japan would produce 17. Similar numbers exist for almost all weapon types and classes. The US had generally between a 5-1 or 10-1 advantage in production. The same is true for raw material. The US had vastly more oil, iron, and coal. They also had more men... and more per-capita wealth. That's not a war you're usually going win. Authors will sometimes use such evocative phases to describe the Japanese decision to go to war with the US as "national suicide." So long as the US decided to stay in the war it was all but inevitable that Japan was going to lose.

Arguing why Japan lost has to start with how vastly outgunned it was. In my mind a more interesting question would be, could the Japanese ever have actually won?

Ian W. Toll has a very nice trilogy on the Pacific War and the first book (Pacific Crucible) has some great background on the pre-war thinking in Japan as well as the relevance of Midway.

Can't go wrong with Shattered Sword though.