Smyth biridied his last four holes to sign for an eight-under 63 on Friday, leaving him in a tie for second with New Zealand's DP World Tour star Daniel Hillier at 11 under.
They were both a shot behind boom Kiwi amateur Yuki Miya, midway through the second round at Millbrook Resort.
It was a gruelling day for the 31-year New South Welshman, who was up at 4.30am in time to complete the last seven holes of his rain-delayed opening round before switching his focus straight to round two.
The Asian Tour regular made the late decision in January to renew his Australasian Tour membership with the hope of making a late run at the Order of Merit title.
Were that to happen, Smyth would earn a full DP World Tour card for 2027.
But adding to his sole win as a professional - which came at the Yeangder  TPC back in 2022 - is very much front of mind.
"I want to play well, I want to lift trophies," said Smyth, who has had more than 20 top-10 finishes since that triumph in Taiwan four years ago.
"I've put myself in contention so many times and I've only won once as a pro and once as an amateur.
"I feel like I should be holding more trophies, so that's what I'm aiming for."
Smyth was tied for second with Hillier, a shot behind the 20-year-old Miya.
The young amateur star bounced back strongly from a double bogey late in his round with birdies on his last two holes to card a 67.
"That double set me back a bit, I definitely had to regroup after that one but I clawed my way back," said Miya, who doesn't intend to turn pro until after the 2027 Eisenhower Cup.
"Obviously there's a long way to go, still 36 holes to play, but I'll do my best, stick to my processes and see how it goes."
Hillier overcame an upset stomach, swing issues and a tricky schedule to stay near the top of the leaderboard at 11 under.
The top Kiwi hope knocked in three birdies to complete his opening round of eight-under 63 and then backed up with a three-under 68.
It would have been even better but for a bogey on the par-3 18th, when Hillier hit his tee shot into the water surrounding the green.
"That probably should have happened a lot earlier than it did," he said.
"The swing wasn't feeling that great."
Hillier has made a flying start to his 2026 campaign on the DP World Tour with top-five finishes in Dubai and Bahrain.
Since 2003, the only New Zealander to win the national Open was Michael Hendry in 2017.
Australian LIV Golf star Lucas Herbert made a big move on Friday with a 65 to go to seven under.
But his playing partner and defending champion Ryan Peake is almost certain to miss the weekend action after bogeying the last two holes of his second round to sign for a 71.
Peake is at level par, with the halfway cut projected to be two under.
