At the end of the level, after you blow up the rock you have to defeat Kagura. Pay no attention to her and instead attack the huge wolf. If you ever get seriously injured you can jump up on the outer wall, since the part you start fighting in is sunken. Nether of the enemies can hurt you here. You can heal freely and use items such as shooting the blow gun or throw shuriken. They cannot block these. Use them to wear the enemies down.