Jones, who has made a slow start to the Japan Tour season thus far in 2017, added a second round of 72 to his opening 69 to be at 3 under par.
Kurt Barnes is in 14th position at 2 under along with Won Joon Lee, Brad Kennedy is at even par, Michael Hendry and Adam Bland are at 1 over and Aaron Townsend at 2 over and just inside the cutline.
Taniguchi, the 49 year old year old winner of nineteen Japan Tour titles, added a second round of 70 to his brilliant opening 64 to extend his opening round lead of one to two.
28 year old Atomu Shigenaga, without a win on the Japan Tour in several seasons of trying, moved into outright second position with a second round of 69 and is now one ahead of local golfer Yusaku Miyazato.
Golfing World talks to Jason Jason Day