Ok, maybe I'm not the sharpest tool in the shed, but on my 2003 scrammy, on the jet needle looking at it like it sits in the carb which would be pointed end down and end with grooves for the circlip up, the farther up I move the circlip the leaner it gets right, as the farther down into the jet the needle goes to lean out the mixture. Mine was at the second to top position when i bought it used and modified, seemed like it was running too rich, plug looked a little black, but mainly in the exhaust which is a white bros e-saeries, the plates were coated with soot and if you gunned it you could see a little black cloud. I moved the needle up to the top, replaced the plug, rode it for a couple of days, now the replacement plug is sooty as can be and it didn't seem to have near the power or run all that well. It's back into the second from top position now, am I wrong about which way to go to lean it out more?

 

The needle is more of a fine adjustment sounds like you need to drop a main jet size. Make sure you check your air filter first could be plugged up it may look ok but not breathing, they should be white when new and they will get a little gray color to them as they filter the air check this first most people overlook this. As to your question about the needle, yes moveing the clip up will make it leaner.