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Forms is not allowing the cursor to move because there is still a value in the PWD field. In order to move the cursor you will need to clear the block or the form with the Clear_Form(NO_VALIDATE) or Clear_Block(NO_VALIDATE) built-ins.
It is standard programming practice that when a User ID or PW has been entered incorrectly, that both the ID and PW fields are cleared and a generic message, such as "Login information was entered incorrectly" displayed versus "User not found" or "Incorrect Password." The reason for this is that if someone is attempting a "Brute Force" attack, to log into your application, they don't know which element of the credentials is invalid. By telling the user their ID or PW is invalid helps the "Brute Force" attacker. :)
In any case, clearing the form or the block will allow the user to reenter their credentials.
Hope this helps,
If someone's response is helpful or correct, please mark it accordingly.
clear block worked just fine..