From what I can tell in your picture, it has ALMOST internally pipped, but not quite yet.
This is taken directly from Pete's hatching guide in the sticky section.
Within another 12 -24 hours of dip down of the air cell there will be shadows become visible within the air cell. These start at the back of the air cell and over a further 12-24 hours gradually extend down the sides and finally along the front of the air cell. On candling there is often movement visible of the shadows. This change is due to the chick gradually moving into its final hatching position. It gradually draws its head up from a position facing its tail and upwards towards the air cell. When viewed from the air cell end of the egg the chicks head is turned towards the right and under its right wing. With the head and beak lying adjacent to the air cell membrane the chick is ready for internal pipping. As the chick is almost fully mature the chorio-allantoic membrane is unable to fully meet the chicks respiration requirements. Oxygen saturation levels fall slightly and Carbon Dioxide levels begin to rise. Often this change in the failing chorio-allantoic membrane can be seen on candling as previously visible red blood vessels appear to take on a darker red colour. The change in blood gas levels is thought to provoke involuntary muscle contractions which have a two-fold effect. The large hatching muscle located on the chicks neck begins to contract with force and results in the chicks bill piercing the inner membrane of the air cell. This is further helped by a tiny sharp harder area on the tip of the upper bill (the egg tooth). With a hole in the air cell membrane the chick is finally in a position to commence breathing using its lungs. Starting with occasional breaths a regular pattern of pulmonary respiration soon becomes established. Internal pipping has now been achieved and a major physiological change has occurred. Internal pipping can be verified in two ways; often the shadows visible in the air cell on candling appear to pule rhythmically and if the blunt end of the egg is held to the ear a faint click clickclick sound can be heard.
Graphics showing the appearence on candling of the start of 'Shadowing' from the side and front view of the egg.
Graphics & Picture showing the appearance on candling of the progress of 'Shadowing' and 'Internal Pipping' viewed from the side and front of the egg.