so my jeep suddenly started having shifting issues, I thought for sure the tranny was bad so I changed it and im having the same exact issue, it wont shift out of first unless you let off the throttle or run very high in the rpms, then after it gets out of first will rev up to about 3500 rpms before it will have power again, its revs up but doesn't seem to engage and contiuously does it, like a dead spot from the time you let off until you reach about 3500 rpms, ive played with the TV (pressure cable) and tried cleaning the plugs but cannot figure it out, any ideas?

Sounds as though your tv cable is not adjusted correctly. To do it right you need a pressure gauge.

Although I don't have much luck with junk yard trannies.

Also did you get a new TC when you swapped trannies?

Disconnect the TCU fuse and see if it will shift manually using gear selector (start in 1-2, then 3 etc). If that works, you have an issue with the TCU or wiring somewhere (grounds etc).

I played with it repeatedly and can not seem to get any change although I do not have a pressure gauge, the transmission was rebuilt about 1000 miles ago and yes It came with a new torque converter, the problems has not changed at all since I switched it

where is the tcu fuse located? I can down shift it into the 1-2 setting but it wont come back out of 1 even after switching to three or drive unless I let off

Not sure the 94 has the fuse, but if it soes, it's here.

The TV cable is adjustable without a gauge. Link below.

https://www.cherokeeforum.com/f2/free-quick-fix-41821/

If all else fails, I would also check your shift solenoids... I had similar problems.. replaced all three and now it shifts great... a good meter and this guide should help you check the solenoids

http://www.pirate4x4.com/tech/billav...AW4_manual.PDF

It is a pretty easy job, buy soleniods (like 100 bucks) drop pan (and fluid) and replace.. they are all right in plain view... only problem may be removing pan from tranny dip stick (i had to cut them apart)

As car I can tell the silenoids are pretty new, I could find the TCU fuse but found the TCU up behind the passenger side of the dash about where that fuse is in the picture, with that unplugged I can manually shift with no issues

So that's good. Now you need to check around for bad grounds/connections etc. Could be the speed sensor. Move the wiring harness around on the transmission itself, plug the fuse back in and see if it changes. I had a spot that was shorting the speed sensor wires to the case when the transmission got hot. It reported to the TCU that the speed was "0" so it would never shift out of first automatically. With the TCU fuse out, I could drive it like a manual. I put a toggle switch on the dash so I could turn the TCU power off. I would have the power on, drive in first, then flip the switch and it would be going fast enough to be in drive!! DId that for a while until I figures out the wiring issue.