The water quality is good and will help keep any infection from spreading like wildfire. You could isolate the pseudo if it's fin shows a progression in rotting away...same for the tang. In the mean time, if you don't already have, a skunk cleane shrimp may help. Though known for their external parasite control, but have been seen to pick at open wounds...sort of cleaning it of any dead and dying tissue the infections feed on. I had one do that to me!!...LOL. I had a scrape on my knuckle and when I put my hand in the tank, the thing came right on over, parked himself on my hand and picked away at the wound. Usually they go for under the nails, but he went past that and straight to the scrape on my knuckle.
Yellow tangs have an attitude, so it wouldn't surprise me if it's chasing the pseudo...though pseudos can get pretty pesty themselves with some fish. It's almost like they deserve to get chased...LOL. How long have you had the tang and pseudo? If one or both are still considered new, the picking may ease over time, but if they continue at it and cause more harm than a simple nipped fin, then some rearrangements may need to be made.
Good luck.