Headbutt is easy to deal with- if you JD it you get a free low fierce into rekkas(unfortunately you are too far away to do low fierce into upkicks), free low short into short upkicks into super, or if you have it, you can just JD and do the qcfx2 punch super for free also. It’s not hard at all to JD the majority of the headbutts that the average Honda player throws at you.
Hands are harder to deal with, your most reliable counter if you know they will hands you is to jump straight up. Kyo’s jump straight up RH(which by the way is an extremely sturdy ass move) into a combo will counter the hands every time. Actually Kyo’s jump up RH crosses up-if their hands move them under you when you jump up and they are on the other side, the jump up rh will cross them up and then you can get a really beefy combo(I wish that the jump up RH was used as his jumpin move also instead of the RH he has-he’d be 10 times better. That move is sturdy). If they like to do it at point blank(like when you get up) you can throw them(if they do it late) or dp/super them(if they do it early) just like blanka’s electricity. And if all else fails at least try to JD a few hits of it and get the meter, and remember, he’s just hitting you with hands. Most Honda’s arent going to do much damage with them, so don’t panic. If the Honda knows about the link combos off of strong hands then you will have a harder time but in general most hondas are just hitting you with about 1400-1500 damage with each hit of the hands. You should be doing about 4500 with each hit you land and your hits are a lot tricker to block than his are. All Kyo needs is one hit and he wins this match-land one of your huge BnB combos and get a lead, and Honda has to come after you. You obviously have the advantage in this kind of match. Don’t fall for the desperation 720, if he has a full meter keep an eye out for wakeup, roll, dash, stand short etc. into 720 super. Dash 720 is actually particularly surprising at times if the opponent is good enough to do it, since short bursts of offense from Honda are usually unexpected and at that range you are often watching for stuff like a headbutt to JD or whatnot and not expecting it.
I really don’t think this is that hard of a matchup for Kyo, as long as you make the most of the mixup opportunities you get and don’t gimp out on your bnb combos and mixups. Honda is far from uncounterable now that all his tricks are exposed and I really don’t see him as being all that abusable anymore…