Answer
The induced current is counterclockwise.
Work Step by Step
By the right hand rule, the magnetic field due to the current in the lower loop is directed upward.
As $x$ increases, the magnitude of the magnetic field through the upper loop decreases.
Thus the magnetic flux directed upward through the upper loop is decreasing.
By Lenz's law, the induced current in the upper loop produces a magnetic field to oppose this change. Thus the induced current produces a magnetic field that is directed upward.
By the right hand rule, the induced current is counterclockwise.
