It´s easy to know which way is which in Reykjavík as the biggest mountain you can see is Esja and it´s always to the north from Reykjavík. In the picture Esja is furthest in the background. The buildings in the background are on the island Viđey.
The building right behind the light tower in a church. From this pier you can catch a boat to go to Viđey. In Viđey the Image Peace Tower is located.

IMAGINE PEACE TOWER is an outdoor work of art conceived by Yoko Ono in memory of John Lennon. It is situated on Viđey Island in Reykjavík, Iceland. The artwork was dedicated to John by Yoko at its unveiling on October 9th 2007,John Lennon’s 67th birthday.