To remove render-blocking JavaScript issue in Magento using layout xml directly simply add either <params>defer</params> or <params>defer</params> before </action> tag.
For example:
<action method="addJs"><script>prototype/prototype.js</script></action>
Replace it with following:
<action method="addJs"><script>prototype/prototype.js</script><params>defer</params></action>
or
<action method="addJs"><script>prototype/prototype.js</script><params>async</params></action>
For example:
<action method="addJs"><script>prototype/prototype.js</script></action>
Replace it with following:
<action method="addJs"><script>prototype/prototype.js</script><params>defer</params></action>
or
<action method="addJs"><script>prototype/prototype.js</script><params>async</params></action>
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