Madrid won the La Liga title with a record-breaking campaign last year but hopes of retaining the trophy all but disappeared by the midway point of this campaign as they fell 18 points behind arch rivals Barcelona.
However, while the league still looks beyond them despite trimming that gap back to 15 points, Callejon feels the team is now back on track going into the business end of the season where they are still eyeing glory in the Champions League and Copa del Rey.
"In the last few games we've been feeling better. Now we have to continue like that," said Callejon at Friday's press conference ahead of Saturday's trip to struggling Granada.
Since the turn of the year Madrid are unbeaten in eight games, winning five and drawing three, the latest of which saw them fight back from a goal down to draw 1-1 with Barca in the first leg of their Copa del Rey semi-final on Wednesday.
Teenage French defender Raphael Varane headed home Madrid's equaliser nine minutes from time at the Bernabeu to save his side.
Callejon said: "For us the result in the Barca game is good. We didn't want to let in any goals, but the draw isn't bad. We're confident of doing well at the Nou Camp."
Looking ahead to the clash with fourth-bottom Granada, the former Espanyol player expects the Andalusian side to provide Madrid with a tough test as they seek to impress new coach Lucas Alcaraz and boost their fight to avoid relegation.
Nevertheless, Callejon remains optimistic Madrid can continue their improved form and pick up the win.
"It will be a very difficult game. They have made three or four signings, they need the points and like every team who face Madrid they are going to come out and give 200 per cent to win," he said.
"We have to pick up points to cut the gap to the leaders in the league and we're confident."
Madrid remain third in the standings but moved to within four points of second-placed Atletico with last weekend's 4-0 derby mauling of Getafe.
New Granada boss Alcaraz faces a baptism of fire as he begins his bid to save his home-town club from the drop with Spanish superpowers Madrid and Barcelona the next two visitors to the Estadio Nuevo Los Carmenes.
Alcaraz took over this week following the sacking of Juan Antonio Anquela, who left with the club in 17th place in the standings, two points above the relegation zone.
The 46-year-old Alcaraz, who was born in Granada and also started his coaching career at the club almost two decades ago, is thrilled to be back there.
He said: "I'm going to work with the same professionalism as I've done everywhere, but this is a special place for me.
"I carry this club in my heart and it's true that it's a dream for me. My objective is to keep the club up."
Granada have boosted their ranks with the signings of Diego Buonanotte and Nolito this week, although it remains to be seen if they play any part this weekend.