Yes that is possible. As you stated in your question description, if all your income is from working in NY and the NY state tax rate is higher than your NJ resident state tax rate, then you would be able to claim a tax credit from NY against your NJ tax liability and the net result would be $0 NJ state taxes owned on your NJ resident state income tax return.
Please note that you will only get a tax credit for your NY state income taxes up to
the amount of NJ state income taxes that would have been paid if the income was
earned in NJ. In other words, you cannot get a refund on your NJ resident state income tax return if your nonresident NY state income credit excesses the rate charged on the same type of income in NJ.
