I thought in Omaha you have to play 2 cards. If the 2 board cards are higher than the Jack, then wouldn't that disqualify the hand because the Jack cannot outkick the board? I was under the assumption that you have to play the best 5 cards (2 from your hand and 3 from the board).
In Omaha, you create your best five card hand by using precisely three community cards and precisely two hole cards.
In this example, your best hand is AA22J, which uses A22 from the community cards and AJ from your hand. Player 2's best hand is KKQQA, which uses AKQ from the community cards and KQ from his hand. Since your two pair has the bigger pair (AA), you win.