Yes, it is possible, although often the effects are not immediate, or even noticeable. It is also possible to use psionic pulses, localized and short range, to critically wound an opponent, especially if you hit certain points in the system. In Naruto this is called the Gentle Fist, but I only mention it because you seem like you might know what that is. Any wounds can be healed, but they tend to be difficult to recover from, especially if a person is particularly skilled in these styles since we are capable of doing long-lasting damage using this and "Brutal Fist" techniques. As with anything else, it is a question of practice and focus.