That's a casual layer, not anything that belongs in here. I like wearing soft, casual jackets like that when I'm dressing casually, and that looks like it's an okay jacket for that purpose. Throw in on with anything you might wear any other lightweight navy jacket with.
In regards to jeans and shoes, oh boy. You want to be wearing dark wash jeans in a straight cut. Not slim, not baggy, and unlike the bootcut, they won't flare out at the bottom. Much better look, it's simple and classic. American Eagle often has obnoxious branding, make sure to steer clear. If you're looking for simple and affordable, the Levi 514 or 501s (though I've never quite understood how you're supposed to work the shrink to fit ones in terms of sizing), Lee Regular fit, or Wrangler Cowboy cut, but those are much harder to find in stores than the Lees or Levis, most of the Wrangler I've seen distributed is the discount stuff and not made to anywhere near the same standards.
In regards to shoes, skip those sneakers in favor of a classic leather shoe. Brown, not black with denim. A boat shoe or a camp moc. And have a few pairs to rotate- they'll all last much longer. For sneakers, go with more classic designs- Chucks, for example. Clean, canvas design. Or something like the Adidas Campus. Puma makes some nice, simple designs too.