Nowadays tattoos are gaining popularity amongst the Japanese youth. They are not primarily interested in traditional irezumi though, they prefer the American style of tattooing and tribals. They are more interested in one-point tattoos, smaller tattoos on one part of the body that are usually done in one sitting.
The Western style of tattoos (which they call yobori, as opposed to wabori) is popular in Japan, especially the old school style like heart, skull and rose tattoos. Tattooing in Japan is also getting more attention among females than among males, something that used to be the opposite. They have become a fashion object.
Although tattoos are getting more popular in Japan, they still face resistance by the Japanese cultural code. That's why temporary tattoos enjoy a wider popularity than permanent tattoos over there.