120 is just fine and dandy
I have 2 brand new bikes here, 1 with just over 1000 miles on it and one with 80 miles. Both have 120-125 psi depending on what gauge i use (Snap on V Draper tools one)
A compression tester is just a tool, the main use is on 4 cylinder engines to test or diagnose problem. IE if you have 140 psi on 3 cylinders but 90 psi on 1 then you know you have an issue on that cylinder.
How the tool is best used on a single cylinder engine is to check the compression and make a note of the psi, then check it every now and then, if you get a reduction then you know to investigate.
It is also worth noting that not all compression testers read the same.
Hope this helps