There is no such thing as a correct Hadith. Every hadith needs to be studied extensively before one can give reasonable assurance whether it is appropriate to attribute any particular narration to Prophet Muhammad (sws) or not. It still does not make a hadith 100% authentic, there always remains room for diasgreement because at the end knowledge gained from ‘akhbar-i-ahad’ is a ‘zanni‘ form of knowledge.
Secondly, ahadith are never used to extract directives, they are application of directives given in Quran or Sunnah. Therefore, if someone wants to know what Islam says about Jihad, then they should consult Quran where all the conditions and prerequites of Jihad are mentioned (See: Discussion 32271).
This particular Hadith, considering that the chain seems sound, if reported correctly by the narrators, is giving a divine information or prophecy about future. It is in no way encouraging or giving directive to Muslims to fight Jews. When seen in the light of Quran, a big chaos will erupt in the world before the day of judgement when Gog Magog will rise to a point that they will surround the middle earth from all the four corners and will launch an onslaught from every high place and the day of judgement will emerge from within that chaos (Quran 21:95-97 AND Quran 18:99 – Discussion 66721 • Reply 66739). Ahadith on Dajjal and the one mentioned in the question can be understood in the light of the same chaos referred to in Quran before the day of judgement. The worrdings of Ahadith should not be understood literally, since such prophecies about future were shown to the Propeht (Sws) in his dreams, and narrators have wrongly reported many such dreams as actual events, therefore, we need to interpret those dreams and try to find a reasonable explanation for them.