"Upload" infers transferring an image from the client to the server. If you just want to display the image, that is ENTIRELY different. 
what you want is to have your <input type=image>, and have an onchange action which reads the path of the image, and then takes that path and puts in the src part of an img tag.
Something like this: (no guarantee for this to work. look up the specifics...)
<html>
<head>
<script>
function updateimgref(){
  var img = document.getElementById("outputimg");
  var input = document.getElementById("imginput");
  if (input.files && input.files[0]) {
    img.href = input.result;
  }
}
</script>
</head>
<body>
<input type="image" id="imginput" onchange="updateimgref()">
<img id="outputimg" href="myblankplaceholder.png">
</body>
</html>
se also 
HTML input type=file, get the image before submitting the form