It is possible to get the mouse position of an element using Javascript. you can also change the pointer to say crosshairs and even echo the position to the user. You could potentially use a absolutely positioned div put the text over the image to "preview" the results.
Here are some stuff to get you started:
Get mouse position:
http://www.codelifter.com/main/javascript/capturemouseposition1.html
Here is some sample JS to create a div dynamically:
var $objDiv = document.createElement( 'div' );
$objDiv.id = 'customDialogBox';
$objDiv.style.position = 'absolute';
$objDiv.style.zIndex = 50;
$objDiv.style.margin = '0px';
$objDiv.style.padding = '0px';
$objDiv.style.top = '0px';
$objDiv.style.left = '0px';
$objDiv.innerHTML = 'Hello World';
document.body.appendChild( $objDiv );
Hit me back if you need more specifics.
-Mike