What type of power steering fluid should i use for my 1987 toyota pickup?

My 1987 pickup has a broken horn too. I looked into it and think I know the reason. The steering wheel has a little pin that rubs up on a metal disk, and this pin and disk are what supply the battery voltage to the horn button on the steering wheel. I can see a small gap between the two. The pin appears to have been worn away just enough that it doesn't make contact anymore. If I shove a piece of metal into the gap my horn will work. I need to replace the pin.

I'd check the whole power steering unit

It is under the hood, in front of steering , next to the tyre.

Old brake fluid can be a dark brownish red color due to contaminates like rust in the system. But the fluid you speak of could be automatic trans fluid. Is your car an automatic? The power steering system in this car also takes automatic trans fluid. Check the fluid levels in the reservoirs. You may have either a auto trans leak or a power steering leak.

yes.

youfind them around the $4000 aus at the moment

It can be done, but you would need to replace the rack and pinion, obtain the power steering hoses, the power steering pump, bracket and belt, from the same year, same motor pick up.

dex 2

Power steering fluid - Dexron 2 or 3 automatic transmission fluid. Yes transmission fluid. And while you are at it check the fluid level in the transmission.
Since you got the hood up, check the brake fluid, wiper fluid, radiator fluid, battery fluid, oil level.

reg power steering fluid