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As others have mentioned the AWD exhaust does sit under the rear differential, but just an inch or so below it.

I'd get that replaced ASAP. Looks like the stock muffler is gone and replaced with some glass pack fart can, which sound extraordinarily awful on turbo four cylinder motors.....or on any motor really. Definitely take it to a shop that does exhaust, or if you are willing to do the work (which is just removing two bolts), you can get an OEM muffler from a junkyard or online and simply bolt it back in place at the flange there - wouldn’t even need to jack the car up to do so. Looks like the midpipe is stock, so as long as it isn't damaged it can be reused.

Just depends on if you want oem quiet or a bit more sporty. Those tubular mufflers all sound terrible on the Juke though, you want a properly baffled muffler. Nismo makes a catback that sounds great but it's like $400-$500. With mufflers the size of the exhaust is directly proportional to the loudness, so keep that in mind. The Nismo catback for example is about half the size of the stock exhaust and uses similar baffling channels and is approximately twice as loud.

Your easiest fix is to just get an used oem catback section and bolt it on. An exhaust shop will probably try and do too much if all you want is back to oem, and they more often than not use crappy Chinese knockoff mufflers that copy other companies designs using cheaper metals. You can bring your own parts in but they can get poopy about it and find other ways to inflate your invoice.
Lmao you said fart can! 🤣
 

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Definitely not supposed to look like that. Now I cut mine completely off right after the cat... And there's nothing added back to it except a short 45 elbow to angle the sound down. I like a little bit of growl and here in Virginia a muffler isn't needed to pass inspection. The only thing that holds them up after the first set of hangers is the last 2 hangers that are welded to the muffler... But in your picture it looks like something has maybe rusted out making it hang that low. Idk..
 
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