Despite a spirited fightback which almost saved a point, Arsenal lost for the second time in their three Group B matches and now prop up the table with just one point from a possible nine. Their last win in the competition was nearly a year ago when they beat Roma 3-1 at the start of last season's second group phase.
But Wenger, whose side are unbeaten in the English premier league and lead the table from Manchester United and Chelsea, believes his men have what it takes to remain in contention in the Champions League.
"The players are down at the moment and they need to get over it. But the team spirit is good. We now have two home matches and we will try and get the maximum number of points.
"We have the chance to progress further, but for this we need to beat both Lokomotiv Moscow and Dynamo in London.
"Even though we lost tonight, we gave absolutely everything for the whole 90 minutes and although we were 2-0
"The situation now of course is very difficult, we need even more metal strength to get through now, but we are still not out of it."
Dynamo Kiev coach Olexiy Mykhaylichenko said his side did well to win after losing Yury Dmitrulin early in the game with an injury and admitted that Arsenal finished the stronger side.
"We had several good moments in the first half and really wanted to keep Arsenal further away from our goal. In the first half we succeeded in doing this, but not in the second. In the second half they had the advantage."
"We achieved the goal we set ourselves. We fought for every centimetre of the field. I am very pround of the lads. Today our supporters were really behind us."
Kiev won with goals from Maxim Shatskikh (27th) and Valentin Belkevich (63rd) while Arsenal scored through Thierry Henry (80th).