It looks like the wire to the jack, so yeah, if its broken internally you have an open circuit.
I looked at my tele wiring and the main difference is that I have my cap soldered to the middle lug on the tone pot. My switch is different, but from what I can tell what you have there looks right.
You mentioned earlier that the volume knob just turns without stopping? Have you looked into whether that's the knob or the pot. If the pot shaft just turns freely I'd say it's buggered. Might be worth swapping that out.
I'm still learning regarding wiring these things - it's confusing as there is more than one way to skin a cat in most cases and different wiring produce different results (beyond working or not). The important thing to remember is that you are essentially managing the signal produced by the pickups on its way to earth - most problems seem stem from poor or incorrect earthing.
Anyway, best bet is to wait for Wierdbits to have another look and see what he reckons. You'll work it out eventually.
Build 1 - Shoegazer MK1 JMA-1
Build 2 - The Relliecaster TL-1
Build 3 - The Black Cherry SG AG-1
Build 4 - The Sonicaster TL-1ish
Build 5 - The Steampunker Bass YB-4
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"What I lack in talent I make up for with enthusiasm"
Test it out of the body like it is in the photo to check that it isn’t any copper shielding shorting out the signal when it’s all squeezed into the cavity (including the jack). If you’not getting anything give some of the wires a bit of a jiggle to see if it’s a dodgy connection.
If still no sound then I’d disconnect the white and blue wires from the volume pot and join them together temporarily to bypass the volume and see if that gives you sound.
Scott.