Use X and Y as member of your class update them in the KeyDown event and invalidate the control that paint the image just after.
private void Form1_KeyDown(object sender, KeyEventArgs e)
{
if(e.KeyData == Keys.Up)
{
x=10;
y=0;
imgCtrl.Invalidate();
}
}
private void imgCtrl_OnPaint(object sender, PaintEventArgs e)
{
e.Graphics.DrawImage(img_player, new Point(x,y));
}
This code should be adapt to your purpose.