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.

OK... but the wire wont be lower as it is fixed now. The wire in the pics below is the wall facing each other. They were leveled on equal height but the beam on one wall makes it seem a little above. But i think you guys are absolutely right that up and down lights wont look good there. I think you are right about down lights lessismoore. Would it look good if i go with two different lights on opposite walls??? it would look odd right.

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

Greetings from Aura you have two options here go for indirect wall lights or wall lamps direct pendent lighting from slab point would also look good many ceiling lights options available suitable for no False Ceiling wall lights are always better it creates ambience.