The sword could go. It would provide the distraction he needed--so he hesitated for a fraction of a second, just enough to let the tentacle wrap around the blade and slip free from his fingers.

He sprang with a little burst of chakra at his feet to give him some height, formed the seals and blew as hard as he could, aiming for the straw on the ground. He didn't trust the fireball by itself, but if he could get the alley blazing...