Pure states are defined as rays of vectors, although different books choose to give different sorts of emphasis on this. Notice that if $\vert\psi\rangle = \alpha \vert\phi\rangle$ for any constant $\alpha \in \mathbb{C}$, then all of the expectation values, probabilities, and etc associated with $\vert\psi\rangle$ are exactly the same as for $\vert\phi\rangle$. For example, the probability for the transition rate between states $\vert\psi\rangle$ and $\vert\xi\rangle$ (I'll assume the latter to be normalized for convenience) will be
\begin{align}
\frac{|\langle\xi|\psi\rangle|^2}{\langle\psi|\psi\rangle} &=
\frac{|\alpha|^2|\langle\xi|\phi\rangle|^2}{|\alpha|^2 \langle\phi|\phi\rangle}, \\
&=
\frac{|\langle\xi|\phi\rangle|^2}{\langle\phi|\phi\rangle}.
\end{align}
An expectation value of some observable $\hat{A}$ also satisfies a similar relation, since
\begin{align}
\frac{\langle\psi|\hat{A}|\psi\rangle}{\langle\psi|\psi\rangle} &=
\frac{|\alpha|^2|\langle\phi|\hat{A}|\phi\rangle}{|\alpha|^2 \langle\phi|\phi\rangle}, \\
&=
\frac{\langle\phi|\hat{A}|\phi\rangle}{\langle\phi|\phi\rangle}.
\end{align}
In short, yes, $|\psi\rangle\langle\psi|$ can be identified with the ray of $|\psi\rangle$. It can represent the pure state because all pure states are defined up to multiplication by a constant complex number.
Notice the necessity of the constancy: phases that depend on space or time do have dynamical effects since they are part of the wavefunction, and can lead, for example, to the Aharonov–Bohm effect. Furthermore, relative constants between states can also be relevant ($\vert+\rangle = \frac{
1}{\sqrt{2}}\left(\vert 0 \rangle + \vert 1 \rangle\right)$ and $\vert-\rangle = \frac{
1}{\sqrt{2}}\left(\vert 0 \rangle - \vert 1 \rangle\right)$ are not the same state, even though the difference appears to be just the phase in front of $\vert 1 \rangle$). Overall phases are irrelevant, but relative phases are relevant.