Yes, Japan is very strong, but we are starting to develop Allied counters. A lot of Allied strategy depends on when Japan attacks. Either the US or the UK will be bigger players depending if they attack early or late IME.
The primary thing for the US is the San Fran/Pearl/Australia/DEI chain. Keep that flowing and Japan will have a tough time. The Anzacs can also easily threaten the DEI (1 move from the Aussie naval base). This leads to 1-2 punches where the US clears out a Japanese cover force and the Anzacs sprint in for a quick invasion of one (or more) of the islands.
The UK depends completely on what Japan does. Japan has the capacity to corner and kill the Brit fleet fairly easily, but doing so will swing them totally out of position to oppose US/Anzac raids on the DEI. If Japan does come for the RN, your goal is to pull them all the way over to India. Dont oblige the Japanese by coming out to fight. If the Japanese wait for a few turns, I think minimal fleet additions (DDs for screening, SSs for spreading out Japanese DDs) are OK but yeah, for the most part it’s massive of conscripted Indian troops. You have plenty of planes to give offensive firepower.
We’ve also taken to having the Brits bring the AA gun with them (it’s like the Ark of the Covenant or something - the Japanese are afraid to attack it! :p ). This discourages Japanese attacks of a few troops and 8-10 planes. They can still do it, but it might be costly!