Flashing CEL means "CHECK ME NOW!"
Yes, I would agree O2's sensors read like they are working.
Does your reader have live data ability?
You should see O2 data changing meaning they are working OK
You can also see the 3rd O2 sensor data, bank 1 sensor 2, see what voltage it shows.
What did cylinder #1's spark plug look like?
The 4.0l sohc has a PCV valve hose that often cracks at the elbow, cause a hard to find vacuum leak.
Have a look here, pictures too:
PCV Elbow - Fix for a very common CEL!