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Help Wifi connecting authenticating loop, fluctuating strength

I can't get my new Huawei Y300 to connect to my home router. It worked fine for the first day, but now it just says "Connecting" then "Authenticating" then back to "Connecting" in a loop that happens about once or twice a second. I also notice the wifi signal strength fluctuates while it's doing this, going from full bars to 1 or no bars during each loop.

On the rare case it manages to connect, the wifi strength continues to fluctuate every second and I can't seem to load any pages. Then after about half a minute it disconnects again. We have various other mobiles, tablets, and computers in the family, and none of them have any problem connecting to the router. What could be the problem? Do you think it's hardware or software related?

Oh, and I've tried restarting the phone, restarting the router, factory reset, removing the sim and sd cards. The connection is WPA/WPA2 PSK
 
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