Sure. There are multiple ways. You can either add the version number of the specific version you want to update to in the docker-compose.yml file like this:
....
n8n:
image: n8nio/n8n:0.47.0
...
and then restart (how to restart bellow)
or you can pull the latest docker-image yourself with:
docker pull n8nio/n8n
and then after that is done, you restart.
How to restart:
# Stop current setup
sudo docker-compose stop
# Delete it (will only delete the docker-containers, data is stored separately)
sudo docker-compose rm
# Then start it again
sudo docker-compose up -d