England's Nikita Parris had a first-half penalty saved by Vanina Correa, but Taylor got on the end of Beth Mead's cross in the 62nd minute to give her side their second straight win.
England, who moved on to six points in Group D, join hosts France, Germany and Italy into the knockout phase.
Japan have four points after they beat Scotland 2-1 earlier on Friday, leaving the Scots without a point from two games.
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