diff --git a/jedi/api/__init__.py b/jedi/api/__init__.py
index a5b0b109..31300974 100644
--- a/jedi/api/__init__.py
+++ b/jedi/api/__init__.py
@@ -157,7 +157,7 @@ class Script(object):
                     if unfinished_dotted:
                         return completion_names
                     else:
-                        return keywords.keyword_names('import')
+                        return set([keywords.keyword('import').name])
 
             if isinstance(user_stmt, tree.Import):
                 module = self._parser.module()
@@ -168,7 +168,11 @@ class Script(object):
             if names is None and not isinstance(user_stmt, tree.Import):
                 if not path and not dot:
                     # add keywords
-                    completion_names += keywords.keyword_names(all=True)
+                    completion_names += keywords.completion_names(
+                        self._evaluator,
+                        user_stmt,
+                        self._pos,
+                        module)
                     # TODO delete? We should search for valid parser
                     # transformations.
                 completion_names += self._simple_complete(path, dot, like)
diff --git a/jedi/api/keywords.py b/jedi/api/keywords.py
index 2a54ba2d..4feb39fd 100644
--- a/jedi/api/keywords.py
+++ b/jedi/api/keywords.py
@@ -5,7 +5,7 @@ from jedi._compatibility import is_py3
 from jedi import common
 from jedi.evaluate import compiled
 from jedi.evaluate.helpers import FakeName
-
+from jedi.parser.tree import Leaf
 try:
     from pydoc_data import topics as pydoc_topics
 except ImportError:
@@ -18,22 +18,49 @@ else:
     keys = keyword.kwlist + ['None', 'False', 'True']
 
 
-def keywords(string='', pos=(0, 0), all=False):
-    if all:
-        return set([Keyword(k, pos) for k in keys])
+def has_inappropriate_leaf_keyword(pos, module):
+    relevant_errors = filter(
+        lambda error: error.first_pos[0] == pos[0],
+        module.error_statement_stacks)
+
+    for error in relevant_errors:
+        if error.next_token in keys:
+            return True
+
+    return False
+
+def completion_names(evaluator, stmt, pos, module):
+    keyword_list = all_keywords()
+
+    if not isinstance(stmt, Leaf) or has_inappropriate_leaf_keyword(pos, module):
+        keyword_list = filter(
+            lambda keyword: not keyword.only_valid_as_leaf,
+            keyword_list
+        )
+    return [keyword.name for keyword in keyword_list]
+
+
+def all_keywords(pos=(0,0)):
+    return set([Keyword(k, pos) for k in keys])
+
+
+def keyword(string, pos=(0,0)):
     if string in keys:
-        return set([Keyword(string, pos)])
-    return set()
-
-
-def keyword_names(*args, **kwargs):
-    return [k.name for k in keywords(*args, **kwargs)]
+        return Keyword(string, pos)
+    else:
+        return None
 
 
 def get_operator(string, pos):
     return Keyword(string, pos)
 
 
+keywords_only_valid_as_leaf = (
+    'continue',
+    'break',
+)
+
+
 class Keyword(object):
     def __init__(self, name, pos):
         self.name = FakeName(name, self, pos)
@@ -43,6 +70,10 @@ class Keyword(object):
     def get_parent_until(self):
         return self.parent
 
+    @property
+    def only_valid_as_leaf(self):
+        return self.name.value in keywords_only_valid_as_leaf
+
     @property
     def names(self):
         """ For a `parsing.Name` like comparision """
diff --git a/test/completion/keywords.py b/test/completion/keywords.py
index 851140b1..ba56c210 100644
--- a/test/completion/keywords.py
+++ b/test/completion/keywords.py
@@ -4,3 +4,24 @@ raise
 
 #? ['except', 'Exception']
 except
+
+#? []
+b + continu
+
+#? []
+b + continue
+
+#? ['continue']
+b; continue
+
+#? ['continue']
+b; continu
+
+#? []
+c + brea
+
+#? []
+a + break
+
+#? ['break']
+b; break
diff --git a/test/run.py b/test/run.py
index a48e1fb2..d7309143 100755
--- a/test/run.py
+++ b/test/run.py
@@ -290,9 +290,12 @@ def collect_dir_tests(base_dir, test_files, check_thirdparty=False):
                     skip = 'Thirdparty-Library %s not found.' % lib
 
             path = os.path.join(base_dir, f_name)
-            source = open(path).read()
-            if not is_py3:
-                source = unicode(source, 'UTF-8')
+
+            if is_py3:
+                source = open(path, encoding='utf-8').read()
+            else:
+                source = unicode(open(path).read(), 'UTF-8')
+
             for case in collect_file_tests(StringIO(source),
                                            lines_to_execute):
                 case.path = path