well because he knows its not nagato and naruto keeps improving not only that but naruto is the fourth hokage's son and the 4th was the strongest shinobi ever (and naruto masterd rasengun and only Jiraya and the 4th had mastered that jutso)
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When Jiraiya was going through Senjutsu training on Mount Myōbokuzan, the Great Toad Sage foretold that Jiraiya will train a student who will either bring peace to the world or be responsible for its destruction. Jiraiya believed the child to be Nagato since he the Rinnegan. However, before he died at the hands of Pain, Jiraiya realized that Naruto was the Child of Prophecy and that he will one day save the world.
They were both the children of prophecy.
It is chapter 382 in the manga, and episode 133 in the anime. The Anime title is called The Tale of Jiraiya the Gallant and the manga is real choice!! or my decision. Jiraiya was stabbed in the back by the six paths of Pain and lost his throat and arm in the process, but believed Naruto as the child of prophecy and passed on the knowledge of Pain and the memories of himself to Naruto as he sunk to the bottom of the ocean and took one of the six paths of Pain out before his official death
A Legend from the Hidden Leaf: The Onbaa! (木ノ葉隠れの伝説 オンバアは実在した!!, Konohagakure no Densetsu, Onbaa WA jitsuzai shita!!) is episode 185 of the original Narutoanime.A legendary creature, the Onbaa, is the central focus of this episode, attaching to Naruto's back and causing havoc wherever Naruto goes. Despite Naruto's efforts, it remains firmly attached to Naruto's back. Tsunade mentions that Jiraiya once went on an expedition when they were kids to find the Onbaa. Tsunade refused to believe that he could find one, however, Orochimaru and stated that he was "betting on Jiraiya this time" before quickly turning around so that no one could see him and began blushing with embarrassment at his sudden outburst and for the fact that he never normally agreed with Jiraiya. Jiraiya then headed into the woods around Konoha and returned sometime later having written a report on Onbaa's, claiming that he had fought one, although Tsunade paid him no heed at the time, believing him to be a fool. The Onbaa continues to increase in size, eventually becoming larger than Naruto himself. However, during a mission, it aids Naruto, causing Naruto to reconsider their relationship, but the Onbaa's mother appears, driving Naruto off and claiming her offspring. The child manages to calm the mother, and the two leave. As Naruto returns to the village, most of the inhabitants have Onbaa on their backs, something Naruto takes in with great gusto but does little to remedy.
In Chapter 342 of Naruto, it is revealed Kurenai is pregnant and Asuma is the father of the child but so far no name has been given nor has the child been seen. At Tokyo's Jump Festa in 2009, Masashi Kishimoto claimed that he was thinking about making their child a girl. Source: below