In order to restore to a journal checkpoint, the vm must be restored at the DR site, to the checkpoint chosen. The current production vm at the source site would be unable to be rewound to a checkpoint, correct?
You are correct that when restoring to a journal checkpoint, as with the Failover process, the resulting VM will be in your DR/Target site. After this process, you could then fail the recovered VM back to your production/source site to get it in that site.