I am not sure on this but I had one that did that and there is a fuse by the side of the dashboard that actually operates the transmission. Check all fuses first then try the box in motor compartment and check all those fuses including your relays. Thats just an easy start to what could be an easy fix.
SOURCE: jeep codes location of unit
Got me a complete manual for 199 jeep factory model and found location of each individual unit in question. Manual gives u possible solution to each code and repair and or replace. As a mechanic myself testing, trouble shooting and repair was not that difficult. Shift solenoid was very difficult to get to. Located under the head lamp passenger side.
SOURCE: Locationof the Torque Converter Clutch Solenoid
Your transmission should still work if the solenoid goes bad. It will just shift funny
SOURCE: 4L60E won't shift to 3rd on 1995 Chevy Astro 2wd
do the pin point tests, these start witjh running a trouble code test, autozone and kragen will do this for free, if u haven't had the trans apart then cross out any crossed wiring issues, but I do think you will find a problem with the 2-3 shift solenoid, either the solenoid has failed or the connector has a problem on the outside of the trans.
SOURCE: honda torque converter clutch solenoid circuit
P0740 is a Torque Converter Clutch Circuit Malfunction, you will need to have just this circuit tested, it is mostly just a defective Torque converter clutch solenoid in the trans or a defective connection to the trans, u do not need another overhaul.
SOURCE: Volkswagen 01M torque converter stuck
You have to be very careful with input shaft rings. They like to eat into the pump stater. Also always buy new vb don't buy rebuilt because they only work 2 out of 5 times. I know this for experience
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