This accessibility feature can be enabled in the menu under Options → Accessibility→ Navigation and Traversal.
Once enabled, press L3 to face the camera in the direction of story progression. Press forward on the left stick to move towards the waypoint. When you hear an audio cue that you've reached the waypoint, press L3 again to repeat the process.
Navigation Assistance can be used for story progression, and can also be utilized to lead the player to areas that contain artifacts, optional conversations, and interactables.