I was looking at this fish yesterday as well... It's not even close to terminal phase. My big male has 5 saddle markings, and his body is turning more of a solid blue color while his head still has the defined orange and blue stripes. I have a smaller male that looks much like the picture you have here, but has lost one of his spots and has saddle marks starting. I initially bought him as a female, but he changed almost immediately to a male without the presence of a male in his tank. When I attempted - after QT - to introduce him to the reef, the big male proceeded to beat the crap out of him, so I moved him to the aggressive tank upstairs.
Long story short, the wrasse in the picture above looks like it may be turning male, but is still a juvenile. I would love to get a female, but even if you find one, they turn quickly to males if they are alone.