I'll give you a descriptive answer.
There are 2 types of keyloggers:
Hardware and Software.
Hardware key loggers are rare, and won't record the On Screen Keyboard strokes.
Software key loggers depending on their capability have the potential to.
Personally I think most of the key loggers you'll face are simply script kiddies, very basic.
Suffice to say, yes an advanced key logger still has the ability to screenshot your screen and track your mouse movements resulting in the ability to decrypt what you type. However I said advanced key loggers, for the most part you would only really face basic ones.
Here is a method to tackle keyloggers.
Let's say your password was: 125436
Type in 1236, then click between '12' and '36' and type in '54'. This will confuse the key logger. Then click your mouse elsewhere and type in a random combination of letters, eg. 'abedcf' This will prevent most key loggers from being effective.
TL;DR: Yes advanced software key loggers can decrypt what you click on the on screen keyboard, however the key loggers we'll most likely face are only basic ones.
