Probably mostly for the higher power rating, yes. (5 V)^2/120 ohm = 208 mW. Even though this is not continuous power, the designer probably didn't feel comfortable using a 0603 or even 0805 resistor, which are often rated ~1/8 W. And a MELF resistor in this case probably gives a higher rated power dissipation per board area than a 1206 resistor, so that's what was chosen.