Just checked my copy of The Standard Catalog of Chrysler 1924-1990 and it appears that all 1937 (and 1938) Chryslers (except Airflows) have the lights just below the hood line as in the linked picture below:
http://www.countryclassiccars.com/cars/1581.jpg
Chrysler Airflows (1934-1937) did have the headlights mounted in the fenders, but the 'regular' cars didn't have that feature until 1939.