OBD-II Code P0720 is defined as a Output Speed Sensor Circuit Malfunction
When the code P0720 is set in the Powertrain Computer, it means that the Powertrain Computer or PCM is not seeing a rational speed signal from the Output Sensor or, there is a greater than specified RPM difference between the rotational speed of the Input RPM Sensor and the Transmission Output Speed RPM Sensor. This can occur during shifting or when driving at steady speeds in the same gear. It often implies that the transmission is slipping.
The purpose of the automatic transmission is to match the engine's optimum power and torque characteristics to the driver's desired rate of acceleration and speed by auto-selecting different gear ratios or 'speeds' to power the wheels.
When diagnosing a P0720 code, it is important to record the freeze frame information and then to duplicate the code setting conditions with a test drive. Pay close attention to the Output Speed Sensor vs engine load, throttle position, RPM, and road speed because a P0720 can be difficult to detect. If the signal is erratic or the values don't seem to make sense, then you may have verified the problem.