If you love that wallpaper, use it in bathroom. Not really right for behind bed. I would go a drum style chandelier. In a silk pale gold. Your bed looks zen or Asian to me. I love it. But, you don't. Need to much with it. Keep it simple a more formal drape on windows, color would depend on wall color and bedding. I'm thinking a dramatic peacock satin. Use a lighter same tone on walls a rich teal. Ceiling can be gold leaf. With alight that cast shadows on ceiling at night. Then your wall paper will tie in. Furn should be mirrored.

This will help get some light into the middle of your space. http://www.westelm.com/m/products/overarching-floor-lamp-antique-bronze-w890/?pkey=cfloor-lamps You could also do end tables or a console behind the couch and place table lamps on either. It doesn't look like you have any seating near the edge of your space and your existing lighting seems to be positioned at the edges of the room. So I'm not sure if sconces would help much.

Suraj, If you have access to the room that you shared earlier you can try seeing the flicker effect at night time with both lights and fan being on. If the lamp has a 360 degree light spread it will cast the fans shadow on the ceiling and when the fan is turned on it causes a flikr effect. I personally find it a distraction and at the same time many would not even notice it. Take the pick based on your usage. Wall mounted fans and recessed fans can also be explored. Thanks, Nitin Cornerstone Designs, Bangalore.

the more gap you have the more light will diffuse. the beauty of cove lights comes from that gradient. if you have a small space then that look won't come. additionally, refering to your previous post, it will also be a place for pests. If you want this design, I would suggest you go with an LED and cover the gap with an acrylic cut out. that will give a nice effect. or create two levels, let the flat part stay where it is and make the circular one a recess