India's top-ranked Dipika Pallikal (World No.10) had bowed out in the first round itself, but Joshna was playing well.
World No.21 Joshna lost the last-eight battle 1-3 in 43 minutes thus ending India's campaign in the event.
Joshna, 27, came back well after trailing 0-2 but World No.4 Joelle reacted quickly to take the fourth game with ease - 11-6, 11-7, 8-11, 11-1.
In 2003, Joshna had become the first Indian girl to win the British Squash Championship title in the under 19 category, at Sheffield, U.K and was also the youngest Indian women's national champion.
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