Goalkeeper Yoshikatsu Kawaguchi was the hero as Japan secured a place in the semi-finals of the AFC Asian Cup after edging out Australia in a penalty shootout.

John Aloisi handed the Aussies the lead from Harry Kewell's inviting corner with 20 minutes remaining but Naohiro Takahara capitalised on a defensive error from Mark Milligan to respond almost instantly for the defending champions.

Vincenzo Grella was then dismissed after clashing with Takahara, but Japan failed to capitalise on their numerical advantage with the scores level at 1-1 after both regular and extra time.

After Kawaguchi saved from Kewell and Lucas Neill in the shootout, Yuji Nakazawa stepped up to convert the crucial spot-kick and maintain Japan's charge for a third straight continental crown.

Japan coach Ivica Osim kept faith with the side that cruised to a 4-1 victory over Vietnam in the last Group B outing, while Socceroos chief Graham Arnold was without the banned Like Wilkshire.

Seiichiro Maki flashed a header wide from Yasuhito Endo's cross inside the opening 10 minutes as the game began at a slow pace with both side's content to retain possession in their own half.

Japan centre-back Nakazawa made a last-gasp intervention midway through the first half as Mark Viduka showed expert control at the near post and looked to pull the trigger from close range.

Endo found open space on the edge of Australia's area seven minutes before the break, but could only scuff his shot from Kengo Nakamura's cut-back and keeper Mark Schwarzer was able to turn the ball away for a corner.

Takahara almost broke the deadlock two minutes later, but he blazed over from close range while under pressure from Milligan.

Japan came out firing two minutes after the break as Schwarzer was forced to produce a smart save low to his left when Kengo Nakamura shot from the edge of the area.

Schwarzer almost handed Japan the lead just before the hour mark as he failed to hold Takahara's well-struck shot, but Maki failed to tap in from close range.

Australia then took the lead as a corner from substitute Kewell, who replaced Viduka on the hour mark, evaded everyone inside the area and found Aloisi at the far post and the Alaves man made no mistake from under the crossbar.

But Japan were back on level terms within two minutes as Milligan failed to clear after Shunsuke Nakamura's cross was headed back across the face of goal by Maki, and Takahara stole in to beat Schwarzer.

Australia were reduced to 10 men with 14 minutes remaining as Grella received a straight red card after catching Takahara in the face with his arm as the pair challenged for the ball in the air.

The match then headed into extra time, and Schwarzer saved Australia in the last minute as the Middlesbrough custodian beat away Shunsuke Nakamura's acrobatic volley from point blank range in the only real attacking threat in 30 tense minutes.

Australia were always behind in the shootout after Kewell and Neill saw their efforts saved by Kawaguchi, and after Takahara was the only Japan player to miss from the spot, veteran defender Nakazawa stepped up to calmly secure the win.