According to an Aljazeera correspondent in the town, Israeli forces on Tuesday besieged a house and opened fire.
A youth, Muhammad Abu Aram, reportedly wanted by the Fatah movement, was wounded and later arrested.
Another Palestinian teenager was also wounded in the town during a confrontation with the army.
Earlier, Israeli forces launched a similiar attack in eastern Jenin city, opening heavy fire randomly.
The forces surrounded a group of Palestinian houses in the area and searched them. They claimed they were looking for “wanted Jenin activists”, eyewitnesses told Aljazeera's correspondent in Jenin.
Armed al-Aqsa Martyrs Brigades resistance fighters had attacked Qadim settlement, near the eastern area of Jenin, a few hours before the Israeli attack.
Meanwhile, in Washington, US officials say the promoters of an unofficial Israeli-Palestinian peace plan known as the Geneva initiative are doing a commendable job.
But the officials proffered no formal support, and still stand by their own "road map" to peace.
Under the Geneva Initiative, drafted by leading Palestinian and Israeli opposition figures, the Palestinians will waive the right of return for some 3.8 million refugees.
"We are always pleased that people speak to each other," said a US State Department official who wished to remain unnamed, commenting on the plan.
However the United States is "certainly not endorsing this particular plan or its particular details," the official said. "Ultimately these issues would have to be discussed by the two parties," the official added.
The plan will be formally unveiled December 1 in Geneva. Former US president and Nobel peace prize winner Jimmy Carter supports the plan, and will be in Geneva for the official unveiling.
The initiative "is a culmination of all previous accords that have been passed," Carter said in an interview.
Under the Geneva Initiative, drafted by leading Palestinian and Israeli opposition figures, the Palestinians will waive the right of return for some 3.8 million refugees. Sovereignty over Jerusalem will be shared and virtually all of the West Bank will be handed over to the Palestinians.
Palestinian leader Yasir Arafat has unofficially lent his support to the plan. Israeli Prime Minister Ariel Sharon actively opposes it, and has said he will only follow the US-backed "road map".