Has something changed within the JP2 reader between FME2014 SP4, and FME2017? I'm using a simple workbench to convert from JP2 to Geotiff, which worked fine in 2014. I'm getting a message in 2017 that I do not get in 2014, "JPEG2000 reader: Mercator projection should not define both StdParallel1 and ScaleatNatOrigin. Using StdParallel1 and ignoring ScaleatNatOrigin." The resulting geotiff does not seem to retain the coordinate system.
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Once the geotiff is written, this is the error I'm getting in Photoshop/Geographic Imager:
"The coordinate system in this reference file is not valid. Failed parsing wkt string <LOCAL_CSC"NonEarth_Meter",UNITI"metre,1,AUTHORITYT"epsg","9001"]]]> with error <GeoCalc Exception Cannot Import Coordinate System from file/stream: Failed parsing WKT/PRJ String.>."
I do not get this error in PS/Geographic Imager when converting the file using FME2014.
What coordinate systems do you have set for the source or destination? For what it's worth I see no other reports of this error message appearing in FME, so it's not a known issue, and it's more than likely a setup issue I think.