ginmtb
'74 FJ40 - my first!
Have you used oem seal? If you have used non-oem seal than it may not be necessarily backwards. Maybe the seal has a recessed face profile.
This is no different to any oil seal, there is only one way to install, and that is the open side inwards and the closed outwards. The cutaway of the seal is like a squared U shape. The bottom of the U should be outwards. I cant even immagine if it's possible to insert the other way as it wouldn't taper in its place. I think you have done it ok, its just a different make seal with a different profile look.
I didnt use the OEM seal but got a high quality Fuji brand rebuild kit from @cruiseroutfit - one side of the seal looks just like yours and the other side has that U channel you mentioned. I have it installed the opposite way you did and it fits. Maybe Kurt can chime in on the orientation. Thanks!