Yes. One yellow wire to the centre contact, the other yellow wire to both of the remaining contacts. Due to the construction of the Peco switch (passing contact effected on one side only at a time for each throw), when the Peco switch is thrown, the contact is made once, hence changing the Dapol signal to "off". Throwing the Peco lever back makes one contact again, hence returning the signal to "on". I have found that throwing the Peco switch needs to be done slowly.
(another) Brian