Where the o2 sensor is, it won't be a problem. However, what is going to be a problem is an exhaust leak before and a little bit after the sensor. You will want to get the o2 housing fixed or buy a new one. It is going to cause poor fuel conditions as the sensor is reading a much leaner condition that what it actually is.
If you do replace it, put the stock sensor up front and either put a plug in on the down pipe or that would be an excellent place for a wideband sensor. You may need to get some new welding done to have a new o2 housing fit the down pipe, but you may not either.
Again, a "j pipe" is on the compressor housing, not the turbine housing.
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