Team Canada came up two runs short in the semifinal round and will now play for bronze at the 2012 Scotiabank Canadian Open Fastpitch International Championship at Softball City.
Competing in tournament's Women's International Division, Canada was edged 3-1 by Japan in Sunday's semifinal action.
Moments after Canada had knotted the score at 1-1 in the top of the fifth inning, Japan answered with a pair of runs of their own in the bottom half of the frame to regain the lead for good.
Japan's defence held the rest of the way to preserve the two-run win.
In the other semifinal Sunday, Team USA stayed unbeaten with a 2-0 shutout win over Australia.
Team USA and Japan squared off in the gold medal game Monday evening while Team Canada took on Japan in the bronze medal match.
In the fifth-place game, Team Venezuela took on Team New Zealand.
All final games were after the Now's press deadline.
The international teams at the tournament will move on to the ISF World Championships in Whitehorse beginning July 13.