Nitrogen pentoxide is a good source of $\ce{NO2^+}$ (in fact the solid form directly contains $\ce{NO2^+}$). So, as you imply, we would expect a nitration reaction especially with an activating, ortho-para directing substituent such as the alkoxy group shown.
The ortho product would be favored by hydrogen bonding, but here there is no hood mechanisms for that. Hydrogen bonding with hydrogen attached to carbon may actually be possible, but it is weak, and the nitrogen group will not provide more strongly protection hydrogen. Therefore the more sterically favored para product would be major.