Two options:
Recreate the image so you don't have to scale the content. This would allow you to fine-tune the placement of the replacement text.
Use horizontal spacing techniques within the replacement text of \psfrag{<tag>}{<replace>} to push the content left/right. For example, \psfrag{xy}{$xy$\hspace{1cm}} would push the content 5mm to the left (since the default replacement positioning is centered. For consistency, and easy of tweaking, define a macro that you can use with specific sets of replacements.
Remember that the full interface provided by psfrag is:
\psfrag{<tag>}[<posn>][<psposn>][<scale>][<rot>]{<replacement>}
I also suggest playing around with <posn> and <psposn>:
[<posn>]
the LaTeX text reference point. The syntax of this argument is identical to that of the \makebox command. Up to two letters may be chosen, one from the list {t,b,B,c}, (top, bottom, baseline, center) and another from {l,r,c} (left, right, center). If either letter is omitted, then c (center) is assumed. Together, these specify one of 12 anchor points. If the argument is omitted altogether, then [Bl], or
left baseline positioning, is assumed—but note that supplying [] specifies centered positioning. When running in LaTeX 2.09 compatibility mode, the default alignment is [bl], in order to support legacy documents. Usually this should not make a significant difference.
[<psposn>]
the PostScript text reference point. The possible arguments are identical to that of [posn], as is the default value, [Bl] ([bl] in LaTeX 2.09 compatibility mode.)
See the psfrag documentation for more detail.
psfragdocumentation: "Make sure that your EPS figures contain a simple “tag” word in each position that you would like a LaTeX replacements. Use a single word, composed of unaccented letters and numbers. Some effort has been made to allow for more arbitrary tag text, but the mechanism is not infallible; see section 8.1." If the editor (Adobe or otherwise) changes this,psfragwill fail. – Werner Feb 17 '14 at 00:21Best regards
– NanisTe Feb 19 '14 at 10:48\includegraphicswithpsfrag-included images, you can use thebb=<llx> <lly> <urx> <ury>,clipoption to specify a newboundingbox for your image. Here you're updating thelower-left (x,y) andupper-right (x,y) coordinates. Read about it in thegraphicxdocumentation (p 10). Also see Clipping a figure to content where theviewportkey is used with a similar interface tobb. – Werner Feb 19 '14 at 12:11