Shorter stem for sure. My girlfriend is 5'3" and rides a 49cm scrambler. Had a long 120ish mm stem and moved to an 80mm and made her a lot more comfortable.
You could also play around with the stem spacers too, from the looks of your bike in addition to stretching out you might be reaching up a little to high to be comfortable. Usually I would associate higher bars with a comfy upright position but if it feels too long as well it could add to the problem.