You don't see many eight-direction shooters in these Jams, so it's fun to see it here. The gameplay itself was smooth, with snappy controls. The bomb youkai were pretty clever, I liked that wrinkle. As for difficulty, I think this is perfectly fine for a three-day affair all considered. The game doesn't feel unfair outside of the one-shot death mechanic; if you get hit it's your fault.
The music not being Touhou is a bit of a distraction, but it's also befitting. I do wish there was more back-and-forth between Reimu and Yumemi; if you had more time, I think you could have programmed some tit-a-tat between the two to mark increases in difficulty.
Overall, a good job!