Chasing Hawk

As you can see from the photos the needle is not in the correct spot. It needs to go forward a touch. Exactly how do I make this adjustment. The timing is not out of whack since I had been sewing all day with it. And the stitches are fine. I was cleaning the machine, dust bunnies and such out of the bobbin area and noticed a scraping sound when I turn the hand-wheel to turn the bobbin area.

Right now the machine is open I can get to all the parts. I just need to know where and how to move the needle forward.