As I remember it. there was a difference between the AS/400 | vertical bar and the ASCII pipe. We used to cut the pipe from an ASCII document and paste it into the 400 application (that was back when computers were made of stone). Don’t know if that would help.
You may be using the wrong character as your pipe. I believe the pipe character looks like this | and is a hex 4F. The ¦ character is a hex 6A.