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Blocking in Tekken is the same as it is in Street Fighter where you hold back to block mid and high range attacks and down/back to block low blows.
This is definitely how it works, but mind you not all attacks can be blocked. You can usually tell which attacks these are when it involves them doing some sort of long wind up and a lot of glowing aura or flames start to surround them while charging up. These moves are more often then not incredibly slow though so it gives you plenty of time to hit your opponent mid move or to just side step. Also, throws can't be blocked but they can be stopped or sometimes even reversed if you input the same throw as your enemy when they grab you.
I've been playing Tekken for a while now so yeah, if you have any questions feel free to ask.