Intuitively, it should be down, just like havasu said.
You need a minimum of 15 inches from the centerline of the toilet drain to a wall, vanity, tub, etc. I don't know what your tile dimensions are, but comparing them to the pipe, they aren't 12". Using a rough scaling from the picture, I'm assuming that is a 4" drain, and that should provide you your 15" plus a little. If that is a 3" line, you could have an issue base on my rough scaling.