1 pip is the smallest change in the currency quotation, no matter which way the change takes place, up or down.
Example: EUR/USD changed from 1.23420 to 1.23425, i.e. by 5 pips in the fifth sign. The pip is equal to 0.00001 for the main pairs in the 5-digit quotations. For pairs where one of the currencies is the Japanese yen, it is 0.001 (3-digit quotation).