Arsenal go into the first leg against the German giants on Tuesday at the Emirates as underdogs after another inconsistent campaign.
By contrast, last year's beaten finalists are 15 points clear at the top of the Bundesliga. But Wenger is adamant his side are now firing on all cylinders and can progress to the last eight in both competitions.
"If we pass Bayern we could say why can't we go on and win it? It looks like the FA Cup is the most reasonable to win it. But let's see," he said.
"I think the important thing is to focus on the two. I believe we have a chance to beat them and we have to take it. We want to be at our best.
"When we went to Real Madrid a few years ago they had Zidane, Beckham, Raul, Guti and we beat them over there.
"We were fourth or fifth in the league then so it's just down to us to believe we can do it.
"The players are focused on Blackburn completely."