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Yeah, the game has an idiotic rule that you must hit a person that has a health bar on the bottom screen and is not your ally. One exception though, with jutsus that are "area of effect" (in red on the jutsu select screen) you can use them regardless of enemy positions. They will hit all the enemies on the map (i think) and are quite overpowered. Also, I am quite sure Itachi's Amaterasu will hit the boss only without a tackle.