Cliff Palace is at the top of the picture. As you go down, you can see where two canyons come together. We are facing one canyon (a short one), and the other canyon farther back is Cliff Canyon, which is where Cliff Palace is located. The section that separates the two is where Sun Temple is located. Referring to the map below, the spot marked Sun Point is where we are located. You can see the small loop road that surrounds Sun Temple, and how that section separates the two canyons.

As you can see, it appears to be a long way down from the alcove to the bottom of the canyon. However, you can't see the canyon floor in Cliff Canyon below Cliff Palace, so it may not be as far down as it looks.