I guess you want to use 720p because UI elements etc. are too tiny for you on 1080p on that monitor...
You can use 720p, but resolution not native to the monitor will produce less sharp / more blurry picture (especially bothersome with text). If that bothers you, you should use 1080p and toy with the display DPI settings in Windows to make the UI elements (and text) larger while retaining crispiness of monitor's native resolution.