I wouldn't drop down to a 120 grain bullet for recoils sake. The difference is not that great.
The 7mm-08 is not a hard kicking cartridge (in a reasonably weighted rifle), but it benefits most by installing a Pachmayr Decelerator Recoil Pad, you can buy them pre-fit or slip on for many rifles.
My Daughter's '08 is pleasure to shoot even full house loads.
I reload for it and make up two loads. One load at 2750 fps and one reduced load at 2450 fps., both using RE-15.
Depending upon where we hunt on the property...a shot over 75 yds. can not be had (use the reduced load). Conversely, there are places where you could shoot 500 yds, though we wouldn't shoot over 300 (use full house loads there).
Both reduced loads (and I believe Light Magnum) are available commercially for the 7mm-08.
Compare the Pachmayr Decelerator Recoil Pad to what comes on the rifle and see if you think it is worth putting on there, it really helps IMO.