To update your Office 365 Password in PSA so PSA can send e-mails for you. Follow these steps
Log in to PSA
Click the yellow Email Inbox on the home page

Click the Settings button on the right side of the page

Then click on The Landings email account link

Use the Reset Password link next to POP3 Password and SMTP Password

Once you have changed the password, click the Save button at the top of the page.