Orange and Grey connector

arm

XS400 Enthusiast
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Canada
Im looking into buying a new wiring harness for my 1978 xs400 but im not sure what this orange and grey (bottom of the picture) connector connects to?
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This thing on the right here, on my bike it dosent plug into anything so im gussing either it isnt nessecary or im misisng a part or it just isnt in the right place? Some more context is that my bike is upgraded to the MikesXS ignition system so it no longer uses points
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