كتب : Omar AbdelAziz
The South Americans recorded their best-ever position to face the winner of the final last 16 tie between Spain and Portugal next week.
Japan's Juichi Komano was the only player to miss from the spot, blasting against the bar, as Paraguay converted five perfect penalties.
Edgar Barreto, Lucas Barrios, Cristian Riveros, Nelson Valdez made no mistake before Oscar Cardozo won the game for the Paraguayans with a super cool penalty.
Yasuhito Endo, Makoto Hasebe and Keisuke Honda scored for Japan.
Stalemate
The first half was evenly-balanced, with Paraguay controlling possession and Japan providing threats on the quick counter.
Paraguay took the initiative when Barrios was foiled by Japan keeper Eiji Kawashima, only for Daisuke Matsui to reply immediately by rattling the crossbar.
The second half was no more than a dull affair as both teams focused on tight defending in fear of conceding; so was the half hour of extra time.