Yes, only at the physical end or as close as reasonably. The termination resistors need to be 120 Ohm, in the end the bus impedance should be 60 Ohms. Different busses can and are setup at different impedance's.
As far as your setup, I have seen much worse, yours is actually fairly good. I now use jumpers with a mail pin on one end and a female on the other. It appears you have at least a meter of cable in the bus, that is good.
Keep going you have come a long way. Now a tough assignment. Look at the two examples, send and receive. You can make one piece of code that will do both with very few changes. Project: Have each one cause a led on the other to blink at different rates of course.