Feng shui tips for living room states that it should be in the south side of the home or should face south. West is another option but it should have a pleasant view.
If the view from your living room has harsh lines as a neighboring home or a city skyline, you should try breaking the lines up with large plants.
Many living rooms are adjacent to kitchens or dining rooms and in these cases it is best to have a visual barrier placed between them with the help of a screen or large plants. If you have doors in between, try to keep them closed.