Villa's 2-1 victory at struggling Leicester City on Tuesday lifted them to seventh in the Premier League standings, just six points behind third-placed Newcastle United albeit having played two more matches.
When former Arsenal manager Emery took charge in October, Villa were in 17th place but they have since won 10 of their 16 Premier League games under the Spaniard, amassing 32 points for the 48 on offer.
Over the last 10 league games only leaders Arsenal and chasers Manchester City have earned more points than Villa and there is a growing sense that a European place is possible.
"Now we can add another step of thinking we can be a candidate to be in a European position -- but it is going to be difficult because Brighton (& Hove Albion) and Brentford are playing very well," said Emery, whose side are above Chelsea and Liverpool.
"Chelsea and Liverpool have to be in Europe next year, they will fight for it, but we can have ambition and motivation to try to be a candidate."
One of the keys to Villa's rise has been the form of striker Ollie Watkins (27) who on Tuesday became the first Premier League player to score in six consecutive away games since Sergio Aguero for Manchester City between March and August in 2017.
"The striker is very important to me. I spoke with (Watkins) at the beginning about the relationship here," Emery said.
"I told him that I want the best of you and the way he is doing; practicing, being humble to improve. This is the way.
"For us, Ollie Watkins is very important. He's not only scoring but his commitment every day trying to add more work, watching his clips. He's the first defence in our idea, trying to be consistent. He's working very well with the high pressing.
"He's trying to fight with the defenders. He's scoring and he's adding the best quality as a striker - the goal."
Villa are at home to relegation-threatened Nottingham Forest on Saturday.
