As noted, Pseudojaloides sp wrasses are a beautiful group of fish with a frustrating and bad record in captivity. The fact that it is eating well is a good sign, but this is often the case and they perish suddenly for no obvious reason.
The same was also the common scenario for Macropharyngodon sp. Leopard wrasses. For some reason they are recently faring much better than they used to. So, maybe we will see the same improvement in shipping and handling and understanding with Pencil wrasses. I certainly hope so--they are awesome.
Until then, these remain, IMO, expert only fish .