He wearing it on his Forehead protector represents his affiliation to it. Well, this not the Headband that a shinobis wears, the symbol on the forehead protector is the “Abura” which as you stated means Oil. Not many in Naruto are aware of Mout myoboku’s existence and they might not suspect. And he is also know as a great spy, so in order to aviod any trouble when spying on different countries jiraiya have choosen to go with that headband. So, this might be the reason why he decided to keep that headband. He has have own rights and can do as he wish. He is not a regular shinobi you can give random missions too. Well he is a sage of Mout myoboku who is also a sannin of the hidden leaf village. Or maybe the 3 Hokage asked jiraiya to stop wearing the hidden leaf village headband to bawdy establishments? Though the Naruto series starts at a time of relative to peace, chances are anyone wearing a hidden leaf village headband in hidden Rain country would be met with unpleasant reminder’s of the war fought not too long ago.Īs jiraiya had now dedicated himself to traveling through various countries as a sage and not a soldier of fire country, he wears a politically neutral symbol. When jiraiya was yonger and participated in the ninja world war he wore the hidden leaf village headband as a soldier a and Fought ninjas from other countries. Though it’s not officially stated, my fan speculation is that jiraiya uses his own symbol, “油” To make other contries More Welcoming of the traveling jiraiya.

Leaf shinobi headband