This location is not necessarily the exact spot to see reindeer, but anywhere between Höfn and Egilsstaðir will be a good spot to look out for reindeer. They can be anywhere and they are anywhere.

Every time I've been in the east I have seen them, but you have to pay attention. Whenever there is a sign that says they are around, watch more closely.

Sometimes it is just one or two, sometimes there is a whole group of them, so keep your eyes open (but also watch the road, please).