Let me amend my previous post. After further testing, it appears that the journal is saved only upon closing out the journal tab (if you open your pack for example). If the journal tab is closed and you log out, then it does not write anything. With that said, changes made outside the game will not be reflected until you log off and back in.
Also interestingly if you enter malformed data ("<LOC?> apple"

it will zero it out to the defaults. However if you enter null data ("<LOC?>"

then it will result in a client crash when you open your quest journal tab.
And most interesting of all, it will handle "Clickable" text. If you add the following line to a entry outside of the game and log in, the text will show as a link (same as player names in chat) and you can click on the text in the quest panel.
<NOTE> <Tell:IIDString:110011:1.1N, 3.3E>1.1N, 3.3E<\Tell>
That string uses the GoArrow click code, so if you click on that location, your arrow would point on it, and if you ctrl click on it, then it will make it your route destination, just like if the text was in the chat window. I could see that be very useful for quest writeups to make it easy to generate a goarrow route.
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Zegeger - HG - 246 - Axe
AgentZ -
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