There should be a hydraulic tie-in block attached to the driver side of the tube near the top. The softline from the frame comes down to it and splits the hydraulic pressure side to side. The breather exits this same block by way of a black rubber tube that tucks up into the rear driver side tub corner.
This is not a D35, but the breather configuration is the same. There's a block on top of the axle tube a few inches from where you see the shock where the rubber hose attaches & goes up into lala land. That's the breather tube.