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It is completely normal for birds to want to be on the highest perch available. (If you held your hand above your head, he'd probably rather be on your hand.) Also, a lot of birds like to play with their owners' hair. They scratch in it, preen it, etc. It is totally up to you if you want to be ok with it or not.
The typical rule of thumb is, as long as your bird is willing to come off your head when you ask him to, then let him up there if you want. If he refuses to step up to your hand when he's on your head, then you may not want to allow him up there, at least not until you spend lots of time training a reliable step up.
If you don't want to allow him on your head, you can just keep taking him off immediately when he tries to get on your head and hope he eventually gets the picture, and/or you can try to make being on your hand more rewarding. Talk to him, play with him, give him a toy to chew on or play with, give him small treats, etc. while he is on your hand--things he doesn't get when he's on your head.
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