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Desroko said:
Is Jap., specifically as an abbreviation, okay? I know I sometimes do that.

I think for the sake of respect, to just spell it out.

I would think, however, this could be acceptable (example):

"The majority of Japanese Developers (JD) are familiar with ray-tracing  advancements. JDs specialize in special effects, after all."

This way, you spell it out the first time, then abbreviate, and it saves you time anyhow - makes you happy, makes those who consider the term derogatory happy as well.

I think the issue of seeing "Jap." together, abbreviated or not, may be insulting to others regardless of your best intentions, so probably best to leave it out.