You can, but depending on the year you may need to install a fan on the radiator as they overheat quickly in traffic, also put a reservoir onto the radiator for coolant overflow so it can draw it back in, consider changing the gearing, smaller rear sprocket and larger front sprocket. I run 16T on the front and 42T on the rear of my 525EXC.
With the fan we have a thermo switch and also a manual control to turn it on/off and have found in town that I do need to have it on as when moving at slower speeds in traffic age does get hot and will actually shut down. I have 50/50 tyres on mine as I do like to get off-road as well.
You should also look at changing the rear wheel to a cush drive as there will be less jolting of the chain.
I ride both into town (100km min round trip on tarmac, both highway and "city" streets) as well as off-road in the dirt.
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