ankee"), and never took it as a pejorative, nor did it ever seem to be used as such.
For a few years prior to this, I lived in Toronto, Canada, but don't recall ever hearing either term there.
As a native Californian, being called a "Yank" didn't seem odd at all (although the protypical "Yankee" is from the Northeastern states, not the Western). However, I suspect someone from the US South would probably have received it with some degree of irony -- but probably not offense, unless through tone of voice it was perceived as such.
One of the most well-known New England regional magazines is called Yankee. :-)
I recently read a great article regarding both the origins of the term as well as some of the more "fine-tuned" features/aspects of a "true" Yankee.
As everyone will agree, the most popular uses of the term are derogatory in some say, ranging from teasing distinction to outright slur. These include:
Southern US citizen regarding Northern US citizen -- This can be more refined to "Those who stayed in the Union during the US Civil War" were called Yankees by those who seceded to the Confederacy. This has carried on into modern times in the American South to mean--basically--anyone who isn't from the South. (A friend of mine from KC,KS was once called a Yankee in Dallas once, to which he replied, "You can yank on this."
Americans (ie US citizens) in general to the rest of the world (in Mexico, spelled
Janqui). This can be a slur "Janqui go home!" or, in other Anglo-descendent countries (Australia, Canada, South Africa, etc) can just mean "Oh those Yanks are at it again"
More archaic - Someone of New England heritage, such as someone from Massachusetts, Connecticut, New Hampshire. A certain cultural heritage can come along with this connotation, such as clam chowder, the rhotic Aaahr (like pahhk the caaa), and a general sense of individualism, self-determination, and stubbornness.
I can't find the article, but it suggested that by the original criteria of the term, long before it became associated with the Mason-Dixon or American Imperialism, that these qualities are really only found consistently in Nova Scotia, making them the only true Yanks left.
However, if you're real question is "Will I get punched in the nose if I call someone a Yankee?" that depends on how likely they would use the term Yankee as a slur toward someone else. The best rule of thumb is not to use a term you think might be offensive unless you're ready to fight or run.