No Connection

Try resetting network settings and adding the network manually under "Other network" in the Wifi settings page. Or see if you are having the same problems as the people in the threads below:

5th gen iPod Touch keeps losing wifi connection

Camera makes wifi icon problem

iPod touch 5 extremely slow WiFi reception

No wifi icon when wifi connected ok

 

Lets go through some steps.

1. Turn on and off wifi (Settings<Wifi<Switch off)

2. Reset network settings, this is a bit risky if you don't know some of your router login passwords however here is how to do it
Settings<General<Reset<Reset network settings.

3. If all else fails, I would bring it up to a local Apple Store (If you have one)