Speaking to the club's official website, Watson said: "This weekend is as big as the last. If we beat Sunderland we go one point behind them and as far as we're concerned it's another must-win game that we'll approach with confidence.
"They haven't had the results they're capable of recently but they're a dangerous side and if we continue our form it'll make for a very entertaining game.
"I made my first start there a couple of seasons back now and got myself on the score-sheet in a 2-1 win, which would be nice to repeat.
"It would be nice to get another goal but I don't tend to get that far up the pitch these days! But whoever gets the goals does so for the team which is the main point.
"I also don't think we've been in a better position to record back-to-back wins before.
"Right now we're playing football better than we ever have done before as a group, and if we take that belief to the Stadium of Light it'll serve us very well."
Watson has been in impressive form of late and had PFA player of the year nominee, Charlie Adam, in his pocket for large amounts of Saturday's game.
The former Crystal Palace midfielder attributes a large amount of this confidence down to the manager, Roberto Martinez, and his techniques.
Watson added: "It was probably the best team performance since I arrived at the club, which is credit to the work of all the players throughout the season.
"A lot has changed since the start of the season but more than anything we've got that belief in us now, something the Gaffer has drilled into us - to belief that we are a top side, and it's rubbed off.
"We believe we're going to go into games and win and although we played five of the top six sides in recent weeks we honestly believed going into those games that we would win.
"The results didn't go for us in the end but the performances showed how confident we were.
"We took that into the Blackpool game and got the result we knew we would get, and to come into training on Monday in 17th rather than 20th is the best feeling in the world.
"Everyone's on a high and, with five games to go, we're looking forward to continuing that form until the end of the season to make sure we achieve what we set out to."
A victory on Saturday over Sunderland would see the Latics power up to 37 points, just three points away from the predicted holy grail of 40 points, expected to be enough for safety.
For the time being, there is plenty of work to focus on for Saturday. Despite Sunderland having lost eight of their last nine fixtures, Steve Bruce will be keen to get one over the Latics.
