Despite guiding the Socceroos to their eighth loss during his 12 games in charge, coach Ange Postecoglou insists his side will be ready for January’s Asian Cup.

While Australia more than held their own in the first half of Tuesday’s 2-1 loss to Asian Cup champions Japan at Osaka’s Yanmar Stadium, Japan turned things up a notch in the second to secure victory and reinforce their status as favourites to defend their Asian Cup crown in January.

Postecoglou was left to rue Australia’s defending from set pieces which resulted in the two second-half strikes from Yasuyuki Konno and Shinji Okazaki before late substitute Tim Cahill headed home a consolation goal in extra-time.

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“It was the little details that let us down, which is unacceptable,” Postecoglou said.

“We talk about wanting to progress our football, but if we are going to be that sloppy about a key part of the game, set pieces, then it doesn’t matter what we do, we are going to pay a price.”

After a string of underwhelming performances since the World Cup, Tuesday’s friendly shaped as the Socceroos’ last chance to renew Australia’s hopes ahead of the Asian Cup on home soil.

But while Postecoglou can take encouragement from the Socceroos’ spirited first half performance, the second half shows there’s still a gap to be bridged with Asia’s best teams.

But the coach is certain they’ll be ready for their opening Asian Cup clash against Kuwait on January 9 and says finally being back home after eight games on the road will be a huge advantage.

“We had a plan post World Cup to try and expose some of our less experienced players to a good level of football. We have done that,” he said.

“Tonight’s performance for the most part shows we are certainly going to be ready for that first game.”

Aziz Behich pressed his claims for the left-back role with a strong showing while Trent Sainsbury emerged as another centre-back option.

Forwards Mathew Leckie, Robbie Kruse and James Troisi combined well in the first half but ultimately lacked killer instinct while midfielder Massimo Luongo showed some fine touch.

While Leckie produced the best chance of the opening half it was again left to the Socceroos’ all-time leading goal scorer Cahill to claw one back.

But Postecoglou said there were plenty of positives to take from the match, especially in light of the absence of key players like Mark Milligan, Mathew Spiranovic and Tommy Oar back.

“Our performance for the most part was extremely encouraging, and shows some progress,” he said.

“We have got some players outside this squad who can add to what we are doing. Mark Milligan, Matty Spiranovic and Tommy Oar went to the World Cup and they are all key components of our squad.

“So I guess in terms of some depth and creating some competition that’s a positive thing.”