Foden feels victory over the Gunners in the Carabao Cup final has handed City some momentum going into the final stretch of the season.
City are nine points behind Arsenal with a game in hand and Foden said: "Definitely (it's all to play for).
"There's still so much to play for. We've got internationals now, so some lads can clear their heads and come back fresh. Yes, it's still possible to do, we still believe in it. It's just small steps in the right direction. It's a good confidence boost and we'll see when we get back.
"Everyone's buzzing. Obviously it could be a big turning point in the season. It's definitely a big confidence boost as well coming into the rest of the season."
On whether the Wembley win will rattle Arsenal, he added: "I don't think so. It's a different competition altogether and I think it's just good to win it. I don't think it's got anything to do with the title. There's still a lot to play for."