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Did you try clicking on the "forgot password" link and do you have an alternate email setup with yahoo it retrieve the password ?
I changed my password via the phone browser with no problems, reset my alternate emails in yahoo and afterwards changed the password on the phone to correspond to the new password, all this using the phone
Try logging on using a computer and see afterwrds if the issue clears up with iPhone browser.
Did you ever change the password in the email settings on your phone to correspond to the new password if not the it is possible that yahoo still has the old password.
Posted from my iPhone/Mobile device
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