TOKYO, May 14 (Reuters) - The Nikkei share average is expected to extend gains into a third day on Tuesday as the weak-yen trend continues to lift exporters, but gains may be limited as investors turn cautious over the rapid pace of the latest rally. Market players said the Nikkei was likely to trade between 14,700 and 14,900 on Tuesday after rising 1.2 percent to 14,782.21 the previous day, its highest closing level since late December 2007. The Nikkei rose as high as 14,849.01 on Monday, its highest since January 2008 on an intraday basis. Nikkei futures in Chicago closed at 14,870, up 0.3 percent from the close in Osaka of 14,820. Analysts said the market may tap a new 5-1/2 year high in early trade on optimism stemming from the weaker yen, but they noted there may be a pullback in late trade on caution over the market's recent steep rises. Since the dollar pierced the 100 yen mark last Thursday, the Nikkei has gained 4.2 percent and is trading 8.5 percent above its 25-day moving average of 13,629.81. "The market is seesawing between worries about the steep rises and hopes for the government's growth strategy," said Yoshiyuki Kondo, an analyst at Daiwa Securities. "It seems like good timing to see a pause in the market." The Nikkei has gained 42 percent this year, bolstered by expectations for the government's growth policies and aggressive monetary easing by the Japanese central bank. On Monday, 5.30 billion shares changed hands on the board, the highest since April 5. The dollar last traded at 101.80 yen. > Wall Street ends near flat after recent highs > Dollar up for 3rd straight session; US retail sales help > Treasuries prices fall after as U.S. retail data > Gold down 1 pct on fund outflows, economic hopes > Oil falls as China demand slows, U.S. gasoline sales dive STOCKS TO WATCH -Sharp Corp Sharp, a supplier to Apple Inc, will aim to boost sales to the iPhone maker's chief rival Samsung Electronics Co under a three-year rehabilitation roadmap to secure its survival. -Nintendo Co Nintendo won a U.S. appeals court decision in a patent case that will allow it to keep importing its popular Wii system into the United States. Ÿ -Isuzu Motors Ltd and Hino Motors Ltd Isuzu and Hino have both budgeted significantly more funds for plants and equipment this fiscal year, with Isuzu planning its biggest outlay in 14 years, the Nikkei said.