Executed by pressing Medium Punch and Medium Kick simultaneously, Akuma strikes a defensive stance. While in this stance, he can parry a single incoming attack, similar to Ryu's Mind's Eye. During the rotation, Akuma has a couple of follow-up options.
By pressing punch, Akuma performs the Rakan Gosho (羅漢豪掌 Rakan Goushou?, lit. Arhat Great Palm), which is a palm strike toward his opponent.
By pressing kick, Akuma performs Rakan Gokyaku (羅漢豪脚 Rakan Goukyaku?, lit. Arhat Great Leg), which is an upward kick.
A successful parry will result in Akuma taking provisional damage. However, he recovers slightly faster than his opponent, allowing him to follow-up with Rakan Gosho or the Rakan Gokyaku. This gives Akuma a defensive option against his opponent's attacks. If he makes the right read and correctly times the parry, he can land a full combo and deal a good amount of damage to his opponent.
Pressing any punch button during the parry has Akuma perform the Rakan Gosho. The speed of this move allow it to be better used as a punish from a opponent mistake. It is mainly used to end combos and gain V-Meter. It leads to a knockdown and inflicts slightly more damage than Rakan Gokyaku. However, Akuma doesn't get any follow-up options after this move. Rakan Gosho can put the opponent in the corner, but the damage output and combo potential is minimal.
Pressing any kick button during the parry has Akuma perform the Rakan Gokyaku. While it inflicts less damage than the Rakan Gosho, this move launches his opponent, putting them in a juggle state. The Rakan Gokyaku is a safe starter for an air combo, should it connect. Akuma can link this move into Hyakki Gosho for optimal corner carry. If caught in the corner, Akuma use Light Tatsumaki Zankukyaku to switch sides before ending the combo with Heavy Tatsumaki Zankukyaku. If Akuma has his V-Trigger active, he can whiff the Rakan Gokyaku before cancelling into Shun Goku Satsu.