Actually, up until the end, I was thinking that Jiraiya had no chance whatsoever, but at the very end, he learned how Pein was managing to dodge his attacks without seeing them. This will lead to him developing a new way to fight without being seen (isn't that what ninjas are supposed to do anyway?) and will probably lead to the fight seriously picking up in a few chapters.

Kind of reminds me of DBZ in the way Goku always plays around for a few rounds before "getting serious" (and then Krillin says something like, "he was just messing around!?") Yeah.