Continuous Displacement Cluster Variation Method is employed to study binary phase equilibria on the two dimensional square lattice with Lennard-Jones type pair potentials. It is confirmed that the transition temperature decreases significantly as compared with the one obtained by conventional Cluster Variation Method. This is ascribed to the distribution of atomic pairs in a wide range of atomic distance, which enables the system to attain the lower free energy. The spatial distribution of atomic species around a Bravais lattice point is visualized. Although the average position of an atom is centred at the Bravais lattice point, the maximum pair probability is not necessarily attained for the pairs located at the neighboring Bravais lattice points. In addition to the real space information, k-space information are calculated in the present study. Among them, the diffuse intensity spectra due to short range ordering and atomic displacement are discussed.