Shinjutsu is a new type of chakra-based techniques that were introduced in Boruto. They are god-level abilities, but some are much stronger than others, and Reflection is probably the most overpowering during combat. Reflect is a simple but very effective ability that can destroy a Kage or Otsutsuki level threat in a split second.
Considering how overpowered Reflection is, it's no wonder most Naruto and Boruto fans believe it cannot be countered. It may be god level but every jutsu has a weakness and every jutsu can be countered in some way. This means that there is at least one eye genjutsu that is powerful and versatile enough to potentially counter Daemon's Reflection.

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Daemon's reflection is probably the most broken ability in the franchise
Techniques like Amaterasu, Reanimation Justu, Susanoo, and Almighty Push are often considered overpowered, but Daemon's Reflection is more broken than all of them combined. In fact, an argument can be made that it is Naruto the franchise's strongest divine ability. The bounce allows the Daemon to instantly bounce any incoming attack back at his opponent. What makes this Shinjutsu so absurdly powerful is that it can even reflect the attack's intent back at Daemon's opponent. If someone like Sasuke thinks about impaling Daemon with a Chidori strike, part of his chest will be automatically destroyed. If a Jinchuriki like Killer B wanted to fire a Tailed Beast Ball from Daemon, he would vaporize before he had a chance to gain chakra.
Boruto is one of the few new generation ninjas that can defeat Otsutsuki, and even he can't win against Daemon when Reflection is active. That said, Reflection has several limitations. For starters, it can only be activated if Daemon's palms are touching another person. Fortunately, the power of Reflection extends to whoever the Daemon touches. The strength of the reflection is also not constant. It is entirely based on the attacker's intent to kill. This means that if someone wanted to playfully smack Daemon in the back of the head, Reflection would deliver a similar tap instead of shooting his head off.
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While Reflection is active, all forms of taijutsu and all offensive techniques of ninjutsu are virtually useless, but genjutsu is a blurred line. Genjutsu techniques do not cause physical harm as they are illusions, however several techniques are designed to simulate pain and death so in theory the genjutsu caster could kill. Some genjutsu are so powerful that they cause severe mental and physical strain on the target's body, which would also imply intent. However, there is one genjutsu technique that can bypass the Reflection intent requirement.

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Shisui's Mangekyo Sharingan produces Genjutsu of the highest caliber
Kotoamatsukami is a genjutsu that can only be used by someone who has awakened the Mangekyo Sharingan, and it helped turn Shisui into one of the strongest Uchiha genjutsu users. According to Itachi Uchiha, who was a genjutsu master in his own right, Kotoamatsukami is genjutsu of the highest caliber. It's so subtle that even the Five Kage didn't notice that Danzo used it on Mifune during the Five Kage Summit to manipulate Mifune into appointing him as the leader of the Allied Shinobi Forces. The only reason it was discovered is because Ao recognized Shisui's chakra with his stolen Byakugan. A reanimated Itachi used the Kotoamatsukami to free himself from Kabuto's control during the Fourth Great Ninja War, and Shisui planned to end the Uchiha coup by using the Kotoamatsukami on the top clan members.
Kotoamatsukami allows the user to enter their target's mind without being detected if the target is in their line of sight. The user can then manipulate their target by giving them phantom experiences, and as long as the target is conscious, every decision they make is of their own free will. Kotoamatsukami is basically a simple but highly effective form of mind control. If the user possesses the cells of Hashirama Senju, who is considered the best Hokage in the Hidden Leaf Village, he can perform Kotoamatsukami at least once a day. However, under normal circumstances, Kotoamatsukami can only be used once every ten years.

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Kotoamatsukami vs. The reflection would be very one-sided
Since Daemon wouldn't be able to detect Kotoamatsukami, it wouldn't be necessary for him to have Reflection active, but there is a very high chance that Kotoamatsukami will still work even if it is active. If Reflection's power is entirely dependent on the intent to kill the opponent, then someone like Shisui can bypass it with Kotoamatsukami without wishing to actually hurt the Daemon. One of the reasons why Kotoamatsukami is considered one of the strongest jutsu in Naruto is his ability to manipulate the target to hurt himself, but that would most likely trigger the Reflection effect. Fortunately, based on how Kotoamatsukami has been used in the past, the user can guide their target down a non-lethal path.
With Kotoamatsukami active, the user can make Daemon take a nap after making him let go of anyone he touches. They could even “order” him to travel around the ninja world until he tried every village's ramen catalog. Technically, if the user does not wish to harm the Daemon, they can simply manipulate him into not activating Reflection when they are together.
Maybe there is a Kotoamatsukami attack component that could work as well. The user could target anyone the demon was touching and “command” them to kill the demon. In this scenario, the killing intent would come from Kotoamatsukami's target instead of its user. If it worked, Reflection would kill Reflection's catalyst, and the Kotoamatsukami user can finish off Daemon with a surprise attack, since Daemon would have to touch another person to use Reflection again.
Reflection is a broken Shinjutsu that can kill or seriously injure anyone in Naruto franchise. As long as the requirements are met, Reflection can counter any offensive jutsu in existence, but a genjutsu like Kotoamatsukami potentially has the power to counter it completely. Granted, the Kotoamatsukami user would need to know how Reflection works beforehand, but that's the only real obstacle the user would have to face. Kotoamatsukami might be able to counter Reflection by targeting anyone the Daemon touches, but the most effective way to counter Reflection would be through non-violent manipulation.
Boruto
- Release date
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April 5, 2017
- Network
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TV Tokyo