After making the Four Nations final with three wins in their first three games, the Hockeyroos suffered a shock defeat to host nation Japan on Sunday afternoon in the climactic match.
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Japan came from behind in Ibaraki on Sunday afternoon to defeat Australia, whose captain is Crookwell local Emily Smith, 2-1.
Renee Taylor had put Australia ahead in the third minute in stand-in captain Jane Claxton’s 150th game but Japan responded before quarter-time through Miyu Suzuki.
Mai Toriyama deflected home from Naho Ichitani’s pass for what proved to be the match winner despite a frenetic finish from the visitors.
The result ends Australia's campaign on a disappointing note after winning all three round robin matches.
Australia are next in action in the last Champions Trophy tournament in China in November, which will be discontinued following sweeping changes announced in 2016 by the International Hockey Federation.
This defeat is another on the Hockeyroos’ list of late-tournament exits, following their thrilling run at the World Cup in London earlier this year, which came to an end following a shootout loss to eventual champions, the Netherlands.
Hockeyroos coach Paul Gaudoin said of the match against Japan that he "thought we got into it towards the end of the first half. It shows how important penalty corners are."
Earlier, Taylor opened the scoring in the third minute with a diving deflection from Claxton’s incisive pass.
Japan responded from a penalty corner when Naho Ichitani’s slider was deflected past goalkeeper Jocelyn Bartram by a desperate Toriyama.
The hosts took the lead when Naho Ichitani dispossessed Georgina Morgan, jinked inside the shooting circle and chipped for Toriyama to convert.
Australia almost levelled right on half-time when Taylor creatively deflected Edwina Bone’s drive into the D.
Morgan also came close in the 30th minute with a drag flick which went marginally wide.
After a series of half-chances for the Hockeyroos, Japan almost got a third when a diving Akiho Imao was denied by Bartram in the third quarter.
Chasing an equaliser in the last 15, Bone again caused chaos inside the D with a driven cross, but Japan goalkeeper Akio Tanaka pushed it away, before Grace Stewart flashed a 58th minute shot wide in the final real chance.
Japan 2 (Suzuki 10', Toriyama 22')
Australia 1 (Taylor 3')