First thing: check the Blue and Yellow wires near the oil tank, by the frame on the right side near the rear brake switch. Make sure the connectors where they plug together are clean and tight-fitting. These are the wires that go to the points. Then, make sure the points have power when they are open: slide a business card (or similar insulator) between the point contacts (to simulate that they are open), and then check the Blue and Yellow wires right there at the points to make sure they show about 12 volts (or use a test light, if that's all you have).
That's the first step. When the points are closed, they are 'charging' the coil that is connected to that wire (either the Blue one or the Yellow one). When the points open, the coil discharges to make the spark.
One thing that you didn't mention: the sparkplug caps. If yours are not new, now would be a real good time to get new ones. Most bike shops have them: use the 5k ohm (5000 ohm) variety (they come in several ohms ratings, so ask for this one in particular). Then clip about 1/4" off of each spark wire when installing the new ones: they screw into the end of the wires and old wires may not allow good contact.
Then report back with what you find?