Ok well I Have 2 1992 Troopers, The Speed Sensor is On the Transfer case. The Shop Manual, don't give the exact Location of the Sensor, But i can tell you is that it is held in there by a Bracket that has only one bolt holding it to the transfer case. it Should be the only thing on the case that has a Long skinny cable coming out of it.
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Don't remember when it was done, but there is no cable after a certain year, it went all electronic. if yours does have a cable, in would be connected to the speed sensor in the transmission and through the firewall to the speedometer. if you have a V6 the sensor is located on top of trans to the right of the vehicle.
have no pic but it is located in the trans axle on top about 4-6" in from the passenger side half shaft were it enters the trans axle.its were the speedometer cable connects to it.there should be an electrical connection at the site.i believe this system was used before they also added one behind the instrument cluster.
THAT SOUNDS MORE LIKE THE VARIABLE SPEED SENSOR! IT IS LOCATED ON THE TRANSMISSION! SOME OF THEM HAVE A SPEEDOMETER CABLE ATTACHED TO THEM, AND SOME DON'T! THEY WILL HAVE A 2 WIRE PLUG THAT IS ATTACHED TO THEM!
I have a Trooper of the same year and have the same problem. I think it's the speed senser that's on the left rear side of the Transfer case (4x4) model. It is very expensive. I hadn't replace mine yet.
Replace the speed sensor located on the transmission this sends the signal to the speedometer, you may want to check the plug and its terminals to be sure the terminals in the plug are not corroded if they are clean the terminals with electrical contact cleaner then drive the care see if cleaning the plug fixed it if not replace the speed sensor.