According to Yotatech Forums, you need a shielded wire. Something like this:
SHIELDED WIRE MIL-C-27500 - WHITE from Aircraft Spruce
Also, sourced from a pertinant thread on 4X4Wire.com: "Make sure that you have a good ground to the engine block. Since the knock sensor's body completes the signal path to ground (engine block).
Also I assume the knock sensor wire is the same or similar to the later years, where there's an inner conductor and then an outer braided shield wire.
The outer shield is connected on the ECU side "only", which the terminal it's connected to is a sensor ground, so make sure the ECU has a Good ground as well.
The inner conductor goes from the knock sensor terminal to the ECU's KNK input terminal. Double check for continuity while wiggling the wire around to verify that the wire isn't going open (broken wire) with the movement of the engine when it's running." -Anonymous
I'm just posting that because if i were in your shoes i would avoid having to throw money at sensors for as long as possible by troubleshooting.
Wish i could help you here definitively. I've searched the OEM suppliers and it looks like your Knock sensor was utilized from 85-86 and is compatible with an 87, whereas the 89 knock sensor works from 87 to 89. There were no signal specifications so i cant determine if the knock sensors have a different output value that the ECU interprets. If you are dead set on replacing the sensor i would suggest is checking your local junkyard for an 85-87 4runner and seeing if the sensor is still in the truck. $200 + is a lot for a sensor, especially if you aren't sure if the original is defective.