Your saddle looks like it might be higher than the handlebars which is not for everyone. For $23 you might want to try an experiment: http://www.universalcycles.com/shopp...5&category=628
Try 110 mm at 125 degrees or you could look at the site and get an adjustable stem. Try a few positions and then when you find what you like buy a fixed.

(or just get a fitting and do it right the first time)

EDIT
Took another look at the picture (after original post) and think that if you go to 125 degrees you will need a substantially longer stem to keep your hands from moving too close to your body. Anyway - the idea is to try another stem that will raise your hands keeping them in roughly the same position relative to horizontal distance from the seat.