Something is obviously wrong/worn down. Gentle bumps give off a knocking sound. However, I did the tie rod test (wheel off the ground, pull back and fourth laterally), and the ball joint (wheel off the ground push/pull vertically) test. Both appear to be fine on each side, nothing visible either. Of course, I just crossed 120K miles, and this has been getting, slowly, progressively worse since last summer. I don't think it's the shocks as it appears to have the same bounce/resistance as my wife's '05... Any ideas?
Given your odometer reading I would say it is likely that your front struts and rear shocks are due for changing. Further, it is certainly possible that a top strut mount is worn. I do not think the bounce test (while the shocks/struts are installed) is very useful on modern vehicles. It was OK on a 60's domestic car that was very softly sprung.
I had similar knocking sound on my 06,noise started at 180,000km,changed tie-rod and anti-roll bushings...problem persisted,my local Toyota Dealer changed front struts under warranty at 240,000km,by that time the knocking sound had become very audible...problem solved!!
LOL!! No,just a really good relationship with my Toyota Dealer, From new up until Dec 08,i had my 06 Taxi serviced 6 time per year,,15,000km intervals,i had a Corolla prior to my Prius..also serviced there,so the service manager just said "leave it with me"...so i did!!