The limit "as x->0" depends only on the values of the function very close to 0. There is no reason to talk about any other values of x and certainly not 0! Also, a function does not have to be "continuous" or even have a value at x= a in order to have a limit there. In order that f(x) be continuous at x= a,
1) the limit of f(x) at x= a must exist.
2) the value of the function, f(a), must exist.
3) those must be equal.
So being continuous at a point is a much stronger condition than just having a limit there!
What you need here is the fact that "the limit, as x goes to a, of f(x)" exists if and only if the two limits "from above" and "from below" exist and are the same.
Since the limit here is at 0, "from above" means x> 0. If x is positive what can youi say about |x|/x? What is its limit? If x is negative, what can you say about |x|/x? What is its limit?