Japan failed to exploit its strong start to the Tokyo Sevens on Sunday, when it crashed out with two straight defeats in the seventh event of World Rugby's Sevens World Series.
England capped a strong weekend in Tokyo with its first cup win in two years, culminating with a 21-14 win over South Africa in the finale.
With Olympic berths going to the top four teams after the final round in London, England moved into fourth place, nine points ahead of Australia with two rounds left to go. South Africa remains the leader, followed by Fiji and New Zealand.
Japan's momentum from the day before stopped cold in the rain at Prince Chichibu Memorial Rugby Ground in an embarrassing 41-5 loss to Fiji in their cup quarterfinal. The hosts showed a little more in their plate semifinal, but were still knocked out by Scotland 14-5.
"Honestly, getting into the cup competition showed what a gap there is between us and the others," Japan coach Tomohiro Segawa said after the Scotland defeat. "We still lack the strength, although we have pulled closer. By playing the same teams over and over, we've been able to adapt to the speed."
Segawa rued having to compete with a constantly changing side mandated by Japanese rugby's stance of not committing to a full-time sevens team.
"We are gaining experience around (captain Katsuyuki) Sakai and a few other core members and will build on that. It is hard, but hopefully with Olympic qualifying coming up, it (more commitment) may come."
Scotland's Colin Gregor opened the scoring when he ran past a tackle from Yoshikazu Fujita. The ball found him after poor passes and sloppy carries by both sides saw the ball skidding about the pitch.
Despite the Scots' domination of the first period, Japan trailed just 7-0 at the half. Although Japan threatened the try line, inspired defending from Scotland kept the hosts from scoring until Shunya Goto crossed with less than a minute remaining.
But the Scots nailed it with a long kick that Chris Dean covered near the Japanese line and pushed across for a last-second try.
In its morning match against Fiji, Japan started poorly and never recovered, looking clueless against its opponent's crisp passing and power runs.
"The problem was tackling and defense," Segawa said. "Just touching their shirts isn't going to do anything."
Josaia Raisuque crossed the line 14 seconds in to put Fiji up with a converted try. Semi Kunatani's bruising run and a tremendous pass set Raisuque up in space for his second.
A turnover and a missed tackle gifted him his hat-trick in the fifth minute. A botched catch by Japan led to Kunatani scoring seconds later.
Sakai finished a brilliant team effort to cross after the hooter to make it 22-5.
Two good Japan movements to open the second half fell apart through ball-handling errors, the second resulting in Fiji's fifth try when Samisoni Viriviri scooped up the loose ball to run in easily.
Raisuque added his fourth when two gun-shy Japanese each looked to the other to make the tackle as Raisuque ran untouched between them.
Savenaca Rawaca dealt the final blow when he ran through three would-be tacklers for Fiji's final try.
Canada upset the historic order in the day's last cup quarterfinal with a 19-10 defeat of New Zealand, the Canadians' first win over the 12-time series champions in 29 matches.
They came within seconds of adding Fiji's scalps to their belts, but a final-second converted try by the Pacific islanders sealed a 21-19 win in the third-place match.
