Without question, yes, the German torpedoes could be set to turn at any angle up to 90 degrees.
[quote]
http://www.uboatarchive.net/U-570BritishReport.htm
See page 19.
What I find fascinating is that, according to this account at least, the TDC was in the conning tower, close to the attack periscope.
As for the angle being shown, I know it is always on in SH3. I haven't been able to play SH5 enough to look around for it.