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Yes.  She can qualify for the Child Tax Credit (CTC) or the Other Dependent Credit (ODC) since she lived with your the entire year. See the relationships below. The CTC is the best.

Qualifiying Child - IRS Child Tax Credit

Must be under 17 at the end of the tax year. Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew).

Double check your entries for your niece in the Personal Information section (see the image below).