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I am trying to send an sms to a list of subscribers in a data extension through journey builder.I have added the DE as the entry source in the journey builder. Then I have created a SMS activity . Subscribers are receiving the SMS. Now subscribers will respond back to the SMS. Based on the SMS response will I be able to send an email through the same journey builder ?

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You can use next keywords https://help.salesforce.com/articleView?id=mc_moc_use_next_keyword.htm&type=5. And in the the response add AMPScript to populate/update a data extension.

Then, depending on what you want to achieve, you can either use AMPScript in an email to adopt the communication. Or add the Data Extension to an Attribute Group if you want to use the response in a decision split.

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